In the inner cities there will soon be one less large retailer. 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 and Austria.
Only one Conrad branch in Germany and Austria remains open
Instead of focusing on private customer business, Conrad Electronic will focus on its B2B customers 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 early as April, Conrad Electronic announced in a statement that all but one branch in Germany would be closed. The company only continues to operate the shop in Wernberg-Köblitz for private customers.
The situation is similar in Austria. It has just become known that Conrad Electronics will also close the majority of its branches here. Only the branch in Linz should remain open to private customers out of a total of six locations. “This decision was very difficult for us, mainly because of our employees, but ultimately we cannot avoid these changed shopping habits,” explains Dr. Markus A. Zettl, Managing Director of Conrad Austria, took the step.
Both in Germany and Austria, the closures and reorientations should be completed in the course of this year. The change from private customer to B2B business is the answer to changing customer behavior. “For generations, part of our success has consisted in listening carefully to customers and then acting accordingly,” says Ralf Bühler, CEO of Conrad Electronic SE, describing the company’s recipe for success. That is 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 in both countries. 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,” says Ralf Bühler. “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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