Patrick Zahn, CEO of the textile discounter KiK, on the consequences of the lockdown for his company and its customers.
Patrick Zahn sits in casual clothes in front of his computer at home in Cologne and conducts the interview via the Internet. The boss of KiK drives two to three days a week to the Westphalian town of Bönen, where the headquarters of the textile discounter is located. Because of the difficult situation, he works significantly more than before, he says from 6 a.m. to midnight, so to speak.
Mr. Zahn, you are angry. Why?
Because I feel that I and our business have been treated unfairly and disadvantaged. Our branches have been closed for ten weeks due to Corona. This places an excessive burden on stationary retailers, which like KiK do not sell any food. Food stores and drugstores, on the other hand, are allowed to remain open - including supermarket discounters, some of which offer textiles. All of this is massive market intervention at our expense. In addition, until recently there was no support for companies with an annual turnover of more than 750 million euros.
Shops may open again soon. The pressure on the government is increasing.
Rightly. Because we too are now reaching our limits. In principle, infection with the virus cannot be ruled out, but it can be greatly reduced with sensible hygiene concepts. This means that our employees wear masks and that only a few customers enter the shops at the same time. Incidentally, the food trade registers 40 million visits a day, whereas the non-food industry only receives ten million. That alone shows that we are not a hotspot.
Do you think the closure of the store is completely wrong - or just badly implemented?
I understood the first lockdown last spring. At that time, almost nothing was known about the virus, and there was great uncertainty. Since then, however, we have learned a lot, including with the hygiene concepts. That is why I now consider it questionable to choose the apparently simplest solution for a second lockdown, which will significantly affect retailers - without even considering other options, such as more consistent protection of the elderly.
If everyone goes out shopping again, there will be more contacts and then more deaths. Do you accept that?
I'm not doing that right now. For example, we try to understand every case of infection among employees in our company. And we know that the number of illnesses among our employees is below the national average. However, what it can cost us as a society to lead our normal lives again, and which values have to be weighed, we have to clarify in a public debate.
The government has launched numerous corona subsidy programs for companies, such as offsetting current losses against previous profits. Can KiK hold out for a few more months?
Politicians are window dressing. Up until the third week of February, our company received zero point zero euros from government aid, including no tax refunds. The short-time work allowance is an exception, but not a generous state aid. But these are the previously paid social security contributions of the company and employees. Now companies with a turnover of more than 750 million euros will soon receive public support. In our case, however, that would be a maximum of twelve million - a drop in the ocean. We have been covering our losses with our own funds for ten weeks. At some point our strength will also be exhausted.
Patrick Zahn, 44, has been CEO of the textile discounter KiK since 2016. He used to work at Plus, A