“We hereby inform you that on September 26, 2024, in the evening hours, the CZC.cz store will be moved to a new platform. We don’t want you to be confused by this change, and that’s why we’re sending you this message,” says the bulk e-mail available to Fairpress.
In it, Allegra representatives assure customers that the change will not affect their previous purchases and their rights. The original e-shop, which proudly called itself number two in the electronics market in advertising campaigns, will no longer be used for shopping. People can only find information on complaints, product guarantees, etc. on it.
“Your purchases made before moving to the new platform will be handled as you are used to,” added the representatives of the Polish marketplace in a mass e-mail.
The mentioned “new platform” is basically just a slightly improved tab on the Polish market, where initially the Czech store will have to fight for the favor of customers among thousands of other sellers.
Although Allegro presents the new platform as a modified version of the existing CZC.cz e-shop, the company’s representatives have already admitted that the store will not be able to offer such options on the Polish market, which set it apart from the competition.
“Although we are aware that for technical reasons we will not be able to transfer all the functions provided by the CZC.cz e-shop, we are determined to improve the new CZC shop on the Allegro platform in the long term. We believe that these steps will bring CZC well-deserved stability and new customers,” the Polish marketplace said in a statement.
The closing of the branches will follow
The next step is to close all own branches, only partner branches will remain. “The majority of CZC.cz brick-and-mortar stores, specifically 41 of our CZC.cz franchise stores, will continue to operate,” Allegro Group spokesman Marcin Gruzska told Novinkám.
“The aforementioned step, including the decision to close nine CZC.cz stores, is in line with our goal of maintaining a competitive and sustainable business,” he emphasized in response to Novinek Gruzska’s inquiry.
However, he did not specify exactly when CZC.cz’s own branches will be closed. However, in the fourth quarter of this year, partner stores will expand their services to include the possibility of issuing goods ordered on the Mall.
Unsuccessful business
In November 2021, Allegro bought WEDO and Mall Group, which also includes the CZC.cz store, from the groups PPF, EC Investments Daniel Křetínský and Rockaway Capital Jakub Havrlant. The amount of the transaction amounted to roughly 23 billion crowns, while the book value exceeded 21 billion.
Already in 2022, just a few months after the final takeover of the new acquisitions, Allegro registered a non-monetary loss, when it reassessed the book value of Malla and WEDO and reduced it by 57 percent, i.e. by approximately 12 billion crowns.
Over the years, the online store CZC.cz was considered the biggest competitor of Alza, which is the largest online retailer in the Czech Republic. He built his e-shop and his image on this, when he presented himself as number two on the electronics market. “We are number two, but we control electronics like a number one,” proclaimed the CZC.cz advertisements.