MADRID – HEMA chain store is leaving Spain after eight years. In 2022, the six stores in Barcelona and Madrid will be closed. “It is unfortunate to note that we have not built up a leading market position in Spain,” said CEO Egas Reparaz.
HEMA currently has six stores in Spain, in the cities of Barcelona and Madrid. Previously, HEMA also announced its withdrawal from the UK. And the company said it was looking at options for its German stores.
Top woman with Spanish roots
HEMA has had a new top executive since June 1. Saskia Egas Reparaz is the first female chairman of the board at HEMA. She has Spanish roots, and was former boss at Etos, succeeded Tjeerd Jegen. According to the CEO, with a focus on a more limited number of countries, HEMA can ‘make better use of the growth opportunities.’ In addition to its home market, the Netherlands, it includes Belgium, Luxembourg, and France. The company also has branches in Germany, Mexico, and the United Arab Emirates. The strategy means that sustainable growth must be possible and that HEMA has a leading market position in a country
Possibly more closures
The decision to close the six UK locations was already taken in July. This fits with the strategy of the Van Eerd and Parcom families, who are owners of the chain. The Van Eerd family also owns the supermarket chain Jumbo. Stores may be closed in even more countries: “We are evaluating our entire country portfolio with the aim of being able to focus on a limited number of countries, so that growth opportunities can be better exploited in the future,” HEMA reports in a press release.
Debt
HEMA has been in the red for years. Last year the loss amounted to €215 million. In addition to a decline in turnover due to corona, this was partly due to the reduction of the high debt burden that arose under the previous owners. The company had to pay €50 million in interest per year. Now that amounts to €10 million per year.
