There will soon be one less large retailer in the inner cities. Conrad Electronic has announced that it will close almost all branches this year. TECHBOOK reveals the reasons for this and how Conrad will continue.
A lot has changed in the past two years. Due to Corona, working life has shifted to the home office for many and retailers have increasingly relied on their online shops instead of stationary sales. Conrad Electronic has also noticed the trend that more and more private customers are completing their transactions online instead of going to the branches. For this reason, the company changes its focus and subsequently closes almost all branches in Germany.
Only one Conrad branch remains open to private customers
Instead of the private customer business, Conrad Electronic will focus on the B2B business in the future. B2B stands for “Business-to-Business” and describes the business relationship between different companies. The classic electronics markets, as known from various cities, are therefore no longer operated. As Conrad Electronic announced in a statement, they will all but one location close in the course of the year. The company only continues to operate one branch in Wernberg-Köblitz for private customers.
The change from private customer to B2B business is the answer to changing customer behavior. “For generations, part of our success has consisted of listening carefully to customers and then acting accordingly,” says Ralf Bühler, describing the company’s recipe for success. That’s why they want to push the business with business partners even further. In early summer 2020, Conrad Electronic opened its first B2B branch in Hürth, North Rhine-Westphalia. Now looking for other locations.
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What happens to the employees?
Not only customers are affected by the closure of the branches, but also numerous employees throughout Germany. Conrad Electronic has already contacted them and offers to apply for vacancies within the group of companies. However, this will certainly not keep all of the employees affected.
“Of course, this step is very difficult for us,” explains Ralf Bühler, CEO of Conrad Electronic SE. “We therefore informed our employees at an early stage and are in talks to find socially acceptable regulations and to live up to our social responsibility.”
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