Dutch value-for-money retail chain DEEN selling all its stores to three competitors, after 87 years in business. 39 stores will be converted into market leading Albert Heijn stores, 22 stores will be owned by soft discounter Vomar and 19 stores will be value-for-money DekaMarkt stores..
Deen says in the announcement that the investments in e-commerce that are needed to survive in the coming years would demand too much from the company. "The size of the necessary investments made the family decide, in close consultation with the management, to make a different strategic choice and to sell the company", it says. The chain cannot communicate how much has been paid.
It is not yet entirely clear what the takeover means for the staff. This still has to be negotiated with the unions. What is certain is that all supermarket employees will keep their jobs and possibly be transferred once the takeover is complete.
Leendert van Eck, who has been CEO of the company since 2016, thinks the decision is a logical step. "We have built up a great company and thanks to the hard work of our employees and our loyal customer base, we can look back on wonderful years. To be future-proof, considerable financial efforts are required, but the family has made a different choice."
The buyers see the acquisition as an expansion opportunity. Albert Heijn CEO Marit van Egmond speaks of "an important strategic step and a unique enrichment of the range of shops in North Holland", Vomar sees it as a unique opportunity to strengthen its position in the market and DekaMarkt points out the many similarities between Deen and DekaMarkt stores, "such as the focus on fresh products".
The transaction should be completed in the second half of 2021, after consultation with the trade unions and advice from the relevant works councils.