Sunday, 15th June 2025

Mercator’s Strategic Retreat

Retail downsizing reflects shifting consumer habits and market pressures, but jobs remain secure—at least for now

Slovenian retail chain Mercator has announced the closure of 43 small stores by autumn, following the shutdown of 29 units last year.

The company, owned by Croatia’s Fortenova Group, reportedly stated that the decision was part of a broader effort to consolidate its operations, with many of the affected shops located near other Mercator outlets.

According to the company, around 20 stores have already closed, with the remaining closures planned over the coming months.

It explained that some of the premises might be turned into franchise locations, while others would be offered for lease or sale.

The company emphasised that employees would not be laid off but instead reassigned to other stores within the network, which is said to be facing staff shortages.

Mercator also indicated that the closures were based on detailed assessments of each store’s performance, taking into account revenues, costs, and local labour market conditions.

Union leader Tina Skubic reportedly told local media that the trade union did not oppose the closures, given that all employees would be retained.

She noted that many of the targeted units no longer met modern working and safety standards.

Mercator’s 2023 financial report showed €1.3 billion in revenue and a €47.8 million loss. Updated results have yet to be released.

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Photo sourceMercator/Linkedin

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