On Thursday, employees were informed about the upcoming reorganization. According to the company, it mainly concerns adapting store staffing to changes in customer visiting patterns and purchasing behavior. No store closures are currently planned, with the goal being for all units to remain in place.
We need to make this change to be properly staffed and meet customers when and where they want, strengthen each store and create conditions for growth, says Claes Meldgaard, Vice President Retail at Kappahl Group.
He adds that the focus is currently on informing internally and providing support to employees who may be affected.
Negotiations with the union will take place gradually during the autumn, meaning that the exact number of affected employees has not yet been determined. CEO Elisabeth Peregi emphasizes that the process should be carried out responsibly with good dialogue.
Customer patterns are changing and we need to adapt accordingly. Of course, it is tough to implement changes that affect employees, says Elisabeth Peregi.
Follows cuts in Mölndal
The current store reorganization follows closely on other structural changes within the fashion chain. During the spring of 2026, the company announced that 45 positions would be eliminated from the headquarters in Mölndal. After completed negotiations and internal reassignments, it became clear in the autumn that around 30 people had to leave their jobs.
The Unionen trade union expressed a desire for a more predictable process in connection with this. The employer justified the measure with the need to manage increased competition from e-commerce and new low-price players.
In order for us to succeed in developing Kappahl Group forward, we needed to adjust our organization to create a simple, efficient and scalable business, commented Communications Manager Johanna Flemström regarding the change at the headquarters.
Continued investments despite profit decline
Despite the staff reductions, the group is currently making several future investments. The company is investing in a new business system, a new logistics center and continued digital development. This is happening at a time when the Swedish business is experiencing economic challenges.
Kappahl Sweden's turnover decreased by 8 percent to 3.5 billion Swedish krona in 2025, and operating profit fell to 131 million Swedish krona. The company explained the development with reduced consumption due to inflation, high interest rates and geopolitical uncertainty. Sales in Sweden were also negatively affected by increased competition, especially in the children's segment.
For Kappahl Group as a whole, turnover in 2025 amounted to just over 5.1 billion Swedish krona, with a profit before tax of 368 million Swedish krona. Investments in new markets such as Iceland, Poland and the United Kingdom, as well as expanded presence on e-commerce platforms such as Zalando, are highlighted as central parts of the company's strategy for future growth.