Europe's retail crisis deepened as companies in the U.K. to Germany are set to cut thousands of jobs as online shopping accelerates erosion of sales from traditional bricks-and-mortar stores.
Tesco, the biggest U.K. grocer, will eliminate about 15,000 positions and close meat, fish and delicatessen counters, the Mail on Sunday reported, citing unidentified industry sources. Galeria Kaufhof, which has department stores in cities including Berlin and Munich, will cut about 2,600 jobs, it said Friday — the same day that German fashion chain Gerry Weber International AG began insolvency proceedings. They join a growing list of European retailers that have collapsed amid ever tougher online competition.
The shift to internet shopping, slowing economic growth and insecurity in the U.K. over the country's exit from the European Union are eating into traditional retail sales.