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Pepco in crisis: 28 branches closing – what does that mean for us?
Pepco is closing 28 stores in Germany, including locations in Oberhausen, due to financial difficulties and operational losses.
Pepco in crisis: 28 branches closing – what does that mean for us?
In the last few days, the news about the bankruptcy of the discount chain Pepco has caused a lot of excitement in Germany. The popular chain, which was founded in Poland in 1999 and now operates around 4,000 stores worldwide, faced operational losses and structural challenges. In July 2025, Pepco Germany GmbH applied for protective shield proceedings at the Berlin-Charlottenburg district court, a step that will now have far-reaching consequences for the branches in Germany. Loud Mercury The closures include 28 of a total of 64 branches by January 2026 at the latest.
The affected branches cannot maintain themselves in an economically viable position. Only 36 locations have a chance of continuing to exist because they were assessed as “promising”. A hard blow for the approximately 500 employees in Germany: around 165 of them have to look for new perspectives. However, it is not clear whether there will be social measures or support offers for the terminated employees Watson Report revealed.
The background to the bankruptcy
Pepco's withdrawal is closely related to changing market conditions. Competition with other established discounters such as Action and Tedi, which have recently expanded significantly, has affected the company. Added to this are rising inflation rates and the global trend towards online trading, which thwarted Pepco's strategic plans, which originally envisaged up to 2,000 new stores in Germany. The company is under pressure to reposition itself in order to operate profitably in the future, as well Trade DHBW notes.
The wave of retail bankruptcies is not an isolated case. In 2024, several big names such as Gortex, Esprit and Galeria Karstadt Kaufhof filed for bankruptcy. The reasons for this are often similar: increased operating costs, consumer restraint and changes in customer behavior. The ongoing pressures of the pandemic have left many companies struggling, so Pepco's bankruptcy comes as no surprise.
- Schließungen bei Pepco: 28 von 64 Filialen betroffen.
- Mitarbeiter: 165 von rund 500 Angestellten verlieren ihren Job.
- Wettbewerb: Konkurrenz durch Action und Tedi.
- Volkswirtschaftliche Faktoren: Steigende Inflation und Online-Handel.
Whether Pepco's remaining locations, which are among the last survivors, will be able to provide the needed boost remains to be seen. Future-oriented measures are necessary in order to survive in a rapidly changing market environment. The industry is looking forward to further developments surrounding Pepco and the reactions of competitors.