The Pepco Group has decided to cease operations in Austria due to the expected inadequate level of returns, the company announced.
The Group is continuously evaluating the effects of implementing its growth-focused strategy and monitoring the performance of the business. As part of this ongoing analysis as well as an in-depth review of the performance of the business, the Group has decided today [19 February] to cease operations in Austria as it does not expect the Austrian market to achieve an adequate level of return, the company announced.
The Group entered Austria in September 2021 and currently operates 73 Pepco-branded shops in the country.
The exit from the Austrian market will improve the Group’s capital position and profitability in 2024 and will allow it to focus on other markets where higher returns can be generated. The exit from Austria will not affect the Group’s continued implementation of its growth-focused strategy in Western Europe. Today’s announcement also has no impact on Pepco’s operations in other countries, it was announced.
Source: Pepco and ISBnews
