Manor to Close Three Department Stores, Impacting 100 Employees
Swiss department store chain Manor is set to close three of its locations – in Delsberg, Wohlen AG, and Sargans SG – by the first quarter of 2027, impacting approximately 100 employees. The decision comes as Manor focuses on strategic investments in its remaining stores and adapts to evolving consumer habits. The closures are not isolated incidents, as the company has been streamlining its operations, particularly within its food retail sector, with several locations slated for takeover by Coop.
The move reflects a broader trend within the retail sector, where brick-and-mortar stores are facing increasing pressure from online competition and changing consumer preferences. Manor cited the significant investments required to modernize the Delsberg, Sargans, and Wohlen properties to meet current building standards and ensure long-term operational viability as the primary driver behind the closures. The company stated that these investments were deemed economically disproportionate, and property owners are now exploring alternative uses for the sites.
Restructuring and Investment Strategy
Manor’s decision to close these three stores is part of a larger restructuring plan that includes a significant investment of approximately 200 million Swiss francs over the next three years. This capital will be directed towards modernizing and enhancing its larger, more profitable locations. According to the company, the focus will be on stores with high customer traffic, with renovations already underway in Emmen, Lucerne, and Pfäffikon SZ, following recent updates to fashion departments in Basel, Lausanne, Vevey VD, Lugano TI, and Geneva.
The company is also transitioning its Manora restaurant in Haag SG to Coop, anticipated to occur around mid-2027. Employees of the Haag restaurant will be offered employment contracts with Coop under equivalent terms and conditions, ensuring a degree of continuity for the workforce. This follows a pattern of collaboration with Coop, as the supermarket chain has already taken over Manor’s food supermarket locations in Rapperswil SG and Emmen LU, with the Basel location slated for transfer in the first quarter of 2027.
Impact on Employees and Labor Relations
While a formal social plan will not be implemented, Manor has instituted a hiring freeze at its remaining stores to potentially absorb some of the affected employees. The company has pledged to actively support the 100 impacted employees in finding fresh opportunities both within and outside the organization, and is engaging in consultations with employee representatives throughout the process. The closure in Sargans will affect not only the department store itself but also the associated supermarket and Manora restaurant, compounding the impact on the local workforce.
Shifting Focus and Strategic Realignment
Manor initially announced restructuring measures in August of the previous year, signaling a strategic shift towards concentrating its food retail operations in the French-speaking regions of Switzerland (Romandy) and Ticino. This move involved the transfer of supermarket locations in Rapperswil SG, Emmen LU, and Basel to Coop. The Emmen supermarket has already been handed over, while Rapperswil will remain open until building permits are secured for the transition, and the Basel transfer is scheduled for the first quarter of 2027.
The company maintains that no further department store closures are currently planned. However, the ongoing evolution of the retail landscape suggests that Manor, like many other traditional retailers, will continue to adapt its business model to remain competitive. The substantial investment in existing locations underscores a commitment to enhancing the customer experience and solidifying its position in key markets.
The Broader Retail Context in Switzerland
Manor’s restructuring reflects a wider trend of consolidation and adaptation within the Swiss retail sector. The rise of e-commerce, coupled with changing consumer behavior, has put pressure on traditional brick-and-mortar stores to innovate and offer compelling value propositions. The collaboration with Coop, through the transfer of supermarket locations, highlights a strategic response to these challenges, allowing both companies to leverage their respective strengths and optimize their market positions.
The decision to close underperforming stores, while demanding, is often seen as a necessary step for retailers to streamline operations, reduce costs, and focus resources on more profitable ventures. The impact on affected employees is a significant concern, and Manor’s commitment to providing support and exploring alternative employment opportunities is crucial in mitigating the negative consequences of these closures.
Looking ahead, Manor’s success will depend on its ability to effectively execute its investment strategy, enhance the customer experience, and adapt to the evolving demands of the Swiss retail market. The company’s focus on its larger, more profitable locations, combined with its collaboration with Coop, suggests a proactive approach to navigating the challenges and opportunities that lie ahead.
The next key date for Manor will be the first quarter of 2027, when the final store closures and supermarket transfers are scheduled to be completed. Further updates on the company’s performance and strategic initiatives are expected to be released in its annual reports and investor communications. We encourage readers to share their thoughts and experiences with Manor in the comments below.