KiK's "five stores, five times the customers" expansion collapsed into cannibalization

KiK is a German discount textile and household goods chain founded in 1994, whose name stands for "Kunde ist König" (the customer is king). It grew on a strategy of near-total coverage — putting a store within walking distance of as many customers as possible — and became one of Germany's largest retailers by store count, present in 14 European countries with 2024 revenue of about €2.4 billion.

In 2026 the company stood the strategy on its head. Management confirmed it will close roughly 300 stores across Europe by the end of the year, 135 of them in Germany, trimming the German network to about 2,200 shops. Around 75 new openings at better locations offset part of the reduction, leaving a net loss of about 225 stores and a European network of roughly 4,000.

Managing director and CFO Christian Kümmel admitted the growth formula had broken: "The formula 'we open five new stores and get five times as many customers' did not work out 100 percent." Because the network had been packed so tightly, some KiK stores sat less than a kilometre apart and simply split the same loyal shoppers while rent, energy and staff costs were paid twice. KiK is not insolvent — it is restructuring from a position of strength, before unprofitable sites drag down the whole balance sheet.