THE WHAT? French cosmetics brand Yves Rocher is closing its physical stores in Germany, Austria, and Switzerland due to unsustainable operations, though they will maintain their online sales in these regions.
THE DETAILS Previously, Yves Rocher, shut down its seven outlets in the Netherlands in 2021. The upcoming closures in the DACH region will affect over 140 stores and result in the loss of around 350 jobs. Employees were informed about these plans in March. The company’s economic challenges have increased since the COVID-19 pandemic. They will still sell products online in the affected markets.
THE WHY? Several other renowned brands, including Galeria-Karstadt-Kaufhof, Görtz, Reno, and Gerry Weber, have also withdrawn from physical retail in Germany. Unlike some of these companies, Yves Rocher hasn’t declared insolvency. The German Retail Association (HDE) attributes the industry-wide closures partly to rising inflation. Challenges from the pandemic and the economic effects of the Ukraine conflict have impacted retail. HDE estimates that 9,000 stores in Germany will close this year, a significant increase from the pre-pandemic average of 5,000 closures annually.