Restructure for Rakuten Europe
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A restructure of Rakuten Europe will see the Japanese eCommerce company exit two countries to focus on France and Germany.
Following a strategic review of its operations in Europe, Rakuten has decided to close its operations in the UK and Spain, due to the high capital cost of growth relative to the size of the businesses. The company says the move will “ensure it is fit to capitalise on future opportunities in the region”.
“Rakuten will focus its eCommerce marketplace investment in France and Germany as the businesses there have the scale and potential for sustainable growth,” it said in a statement.
Rakuten has started to talk with employees around the its plans to close the Rakuten UK marketplaceand its Cambridge operations and the Rakuten Spain marketplace and its Barcelona operations.
The company will also start serving Austrian merchants from its German operations base after closing its dedicated Austria portal, currently managed out of Vienna.
Rakuten says the marketplaces will close by the end of August, subject to completion of the consultation process with impacted employees in relevant jurisdictions, as well as other legal processes.
“Rakuten will continue to evolve the eCommerce business model in countries across Europe, including initiatives such as the launch of a new Price Club to enhance membership loyalty in France and Rakuten Pro in Germany, a low-commission model for merchants aimed at enhancing service quality,” the statement said.
“Rakuten will also continue to grow its presence in Europe across its diverse business portfolio, from eCommerce to digital content businesses such as Wuaki and Kobo, to the Viber messaging platform and the adtech business Rakuten Marketing.
Headquartered in Tokyo, Rakuten Inc is one of the world’s leading internet services companies, offering a wide variety of services for consumers and businesses with a focus on eCommerce, finance, and digital content. It is Japan’s largest online retail portal, long referred to as “Japan’s Amazon”.
Questions & Answers
Q.Why is Rakuten closing its operations in the UK and Spain?
Why is Rakuten closing its operations in the UK and Spain?
Rakuten is closing operations in these countries due to the high capital cost of growth. This cost is considered too high relative to the existing size of the businesses in the UK and Spain, prompting the decision to restructure.
Q.Which specific Rakuten operations will be affected by these closures?
Which specific Rakuten operations will be affected by these closures?
The closures will impact the Rakuten UK marketplace and its Cambridge operations, along with the Rakuten Spain marketplace and its Barcelona operations. Rakuten's dedicated Austria portal, managed from Vienna, will also be closed.
Q.When are the marketplace closures expected to be completed?
When are the marketplace closures expected to be completed?
The marketplaces are expected to close by the end of August. This timeline is subject to the completion of consultation processes with affected employees in the relevant countries, as well as other necessary legal procedures.
Q.Will Rakuten fully exit the European market after these changes?
Will Rakuten fully exit the European market after these changes?
No, Rakuten will not fully exit Europe. It plans to focus its eCommerce marketplace investment in France and Germany and will continue to grow its presence in Europe across its diverse business portfolio, including digital content and other services.
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