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Sudden Resignations Rock Lidl’s German Parent: Reports

CEO of Lidl in Germany resigns weeks after his counterpart at sister chain Kaufland separately departs. Schwarz Group, the Germany-based owner of the Lidl chain, is absorbing the reported departures of two key leaders in its home country.

Jon Springer, Executive Editor

April 2, 2019

2 Min Read
Lidl exit
Schwarz Group, the Germany-based owner of the Lidl chain, is absorbing the reported departures of two key leaders in its home country.Photograph by WGB Staff

A series of high-profile executive departures have rocked the Schwarz Group, the German retailing giant that owns the Lidl chain, reports out of Germany have indicated.

On April 2, Jesper Hojer resigned as CEO of Lidl, effective immediately, reports said. His departure comes less than three weeks after Patrick Kaudewitz, CEO of Schwarz’s supermarket chain Kaufland, also resigned abruptly.

Hojer, a native of Denmark, had served in Neckarsulm, Germany as Lidl’s CEO for two years. In this role he was the highest ranking executive across the entire company, which operates more than 10,000 discount stores in 29 countries. Lidl's newly installed U.S. chairman, Roman Heini, reported to him, sources said.

According to reports, Hojer resigned to spend more time with his family. Ignazio Paterno, a deputy purchasing director at the company and a former CEO of Lidl’s Italy division, has reportedly been tapped as a provisional leader.

In the meantime, Schwarz Group CEO Klaus Gehrig has temporarily taken control of the Kaufland chain while a replacement for Kaudewitz is sought.

Gehrig is said to be the demanding confidant of the Schwarz Group’s owner, Dieter Schwarz, who reportedly is Germany’s richest man. Gehrig reportedly praised the outgoing Hojer, but some reports suggested he was involved in conflict at Kaufland. Lidl has seen considerable management turnover in recent years. The U.S., for example, has seen three CEOs and as many board chairmen installed to oversee them, since word of its stateside expansion first emerged in 2015. Hojer succeeded Sven Seidel in 2017 after Seidel reportedly resigned in conflict with Gehrig.

One source, who spoke confidentially to WGB, said Gehrig was given to impulsive and at times “irrational” decisions that given his power, could have far-reaching effects including further management changes.

“Lidl and Kaufland both have problems, but are still clanking on thanks to the essential efficiency of the original system and a solid phalanx of middle management,” the source said.

Lidl is in the midst of a U.S. expansion and recently installed Heini, who was working at Lidl’s German headquarters.

A spokesperson for Lidl in the U.S. was not immediately available for comment.

 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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