Drugstore chain's long-time CEO, Erwin Müller, steps down, leaving uncertainty about his replacement.
Veteranentrepreneur Erwin Müller, founder of the 70-year-old drugstore chain bearing his name, is gradually stepping down at the age of 92. According to Manager Magazin, Müller is transferring more power to Elke Menold, his long-standing purchasing chief.
Previously, Müller regularly visited one of his approximately 950 branches by helicopter every Wednesday. Now, he makes only one monthly visit. Menold appears to be gaining significance within the company, with more department heads reporting to her. She is increasingly involved in Müller's core areas, including logistics, expansion, and real estate. However, Menold, at 63, is not considered a direct successor. Instead, it seems her task is to select a new CEO.
This leadership transition has caused some internal discontent, as Müller has been silent on the future direction of the company. Concurrently, Müller's drugstore chain is experiencing a decline in economic performance, with main competitors Rossmann and dm showing growth.
In recent years, discussions have centered on building a new company headquarters, overdue investments in IT, and the slow expansion of new branches. The drugstore chain generates around 5 billion euros, but Rossmann and dm are significantly larger.
A potential industry trend emerging involves large retail chains, including Müller, moving into toy sales to address the void left by declining traditional toy retailers as consumer shopping habits shift online. However, it remains uncertain how Müller plans to adapt in this evolving retail landscape.
The future direction of the drugstore chain is currently unknown, as Menold, Clarissa Käfer from the same fine food company, and former Austrian Minister of Justice Beatrix Karl oversee Müller's private foundation. Müller himself is not commenting on these developments, even to senior executives within the company.
- Given the leadership transition within the Müller drugstore chain, Elke Menold, the long-standing purchasing chief, is increasingly involved in the company's core areas, including financial management, entrepreneurship, and strategic decision-making for small-business expansion.
- As Müller's drugstore chain faces internal discontent and a decline in economic performance, Menold, along with others overseeing Müller's private foundation, must address potential solutions such as investments in IT, improving business leadership, and adapting to changing retail trends like the move into toy sales.
- With the future direction of the drugstore chain uncertain, Menold's task seems to be selecting a new CEO who can effectively lead the company in finance, entrepreneurship, and small-business operations, ensuring its growth and success in the evolving retail landscape.
