The Vita chain closes stores. Due to the change of owners of the Vita store chain, a decision was made to close 58 stores. The reason for closing stores is the declaration of bankruptcy by the chain. Ultimately, 83 out of 230 stores are to be closed. The Vita cosmetics store chain was a very strong support for the Norwegian economy. Due to the fact that the chain closes its stores, we can talk about a situation in which a very large number of people will lose their jobs. However, it is still unknown what exactly will happen to the Vita store chain. Currently, the chain employs nearly 1000 employees. Thus, the closure of every third store will entail a huge number of layoffs. What else do we know?
The Vita network closes stores - profitability is weakening ...
The main reason why stores will close is that they are no longer profitable. According to a spokesman for Jotunfjell Partners: There are still a few stores whose status is unclear. They may also be closed, although this is not yet a certainty. According to a spokesman, the first and most important factor is the long-term profitability of a given store. If it does not show such data, it is the first step to make a decision to close it. Another reason why Loco and Vita group stores are closing is change of trend on the retail market in Norway. Over recent years, these groups have recorded a significant decline in profitability compared to previous years. Unfortunately, this trend still persists. Norwegian economy it's going through a crisis.
What do we know about the liquidation of Vita stores?Let's talk about numbers ...
The Vita chain closes stores. Finally - some numbers. In 2018, the revenues of Cosmetic Group AS amounted to nearly 1,4 billion crowns. The group's operating profit alone was approximately CZK 29 billion. The loss before tax in the case of Cosmetic Group AS amounted to nearly 4 billion kronor. These numbers do not speak in favor of the Norwegian cosmetic giant. Unfortunately, there is no chance of stopping the closure of stores that belong to the group. In order to actually stop this process, the group would have to start recording increases. However, this is not happening and there is no indication that this trend will change.
