Intensified market competition from rivals such as Temu and Action has forced Depot to rethink its strategy and enhance its product offerings.

Depot, a German interior decoration retailer, is set to close at least one-third of its stores in Germany as part of a major restructuring effort announced by owner Christian Gries.

Since the beginning of 2025, Depot has already shuttered 45 locations and plans to close an additional 54 stores in April and May.

Gries emphasized the necessity of optimizing costs and streamlining operations to restore Depot's profitability and ensure its survival in a challenging market.

This move will result in the closure of at least 100 stores as Depot seeks to regain competitiveness against online platforms like Temu.

He acknowledged that the retail landscape has shifted significantly, with cheaper alternatives and online shopping eroding Depot's market share.

In addition to store closures in Germany, Depot's subsidiaries in Austria and Switzerland have also faced insolvency, with Austria reducing its locations to 27 and Switzerland closing all stores.

Following its insolvency, Depot will be transferred to a newly established company, GDC Deutschland GmbH, which will retain key assets and continue operations.

Depot filed for self-administration insolvency in July 2024 due to financial difficulties exacerbated by the COVID-19 pandemic.

Despite the closures, Depot plans to maintain small shops integrated within larger retail spaces, with around 165 locations currently operational in supermarkets like Rewe and Edeka.

The closures are expected to lead to approximately 2,000 job losses among Depot's 3,300 employees, following the shutdown of 43 stores in 2024.

The overall retail sector in Germany remains under pressure, with projections indicating a decline of 4,500 stores in 2025, bringing the total down to around 300,000.