OBI: Gundel’s departure comes amid franchise expansion

OBI is changing its leadership: Sebastian Gundel has left the DIY retail chain with immediate effect and will take the helm at rival Kingfisher on 1 February 2027. The move is particularly relevant to Germany’s franchise sector, as OBI has recently highlighted new franchise partners as a driver of growth. Until a successor is appointed, two existing board members will jointly lead the company.

Two existing board members take interim charge

The OBI Group announced Gundel’s departure in Wermelskirchen on 13 October 2026. According to the company, the departure was by mutual agreement. Gundel had led OBI since 2022 and has more than 20 years’ experience in the home improvement sector.

Chief financial officer Miguel Müllenbach and chief sales officer Jochen Ludwig will share leadership responsibilities on an interim basis. This places the business in the hands of two executives who already hold key roles within the company. Müllenbach oversees finance, while Ludwig is responsible for the product range and sales. The search for a new CEO has begun, but OBI has not yet announced a timetable for a permanent appointment.

Majority owner Tengelmann has emphasised continuity following the change. This is the central message for the existing network of company-owned and partner-operated stores. It does not, however, identify who will permanently replace the outgoing CEO.

For franchise partners, two points are therefore clear for now: operational leadership will remain in internal hands, and the search for a successor is under way. Neither a named external successor nor a firm handover date has been announced.

Franchising underpins growth in Germany

OBI operates a hybrid model, combining centrally managed stores with outlets run by independent franchise partners. In its review of Gundel’s tenure, the company explicitly highlights the strengthening of its franchise business and its offering for trade customers. The leadership change therefore comes at a business whose development depends on more than company-owned sites alone.

The importance of franchise partners to expansion is evident in OBI’s plans for Germany in 2026. The company had planned 15 new DIY stores for the first half of the year, operated by five new franchise partners. These were intended to add more than 130,000 square metres of retail space. OBI described this as the largest increase in retail space in its history.

These figures refer to the announced expansion plans. They should not be taken as confirmation that all the planned openings have since gone ahead. Nevertheless, they illustrate the scale of the partner-led growth OBI has recently pursued, providing context for the leadership change.

According to Retail Gazette, OBI operates more than 660 stores across ten European countries. Its German expansion is therefore part of a wider international presence. For the franchise sector, the German plans remain particularly noteworthy because five new partners were expected to account for a substantial increase in retail space.

Gundel moves to a European rival

Kingfisher also confirmed Gundel’s appointment on 13 October. He is due to succeed Thierry Garnier as CEO on 1 February 2027. Chief financial officer Bhavesh Mistry is scheduled to take interim charge for January 2027. There will therefore be a gap of several months between Gundel’s immediate departure from OBI and his start at Kingfisher.

Kingfisher owns the B&Q, Screwfix, Castorama and Brico Dépôt brands. It is a competitor of OBI, not its parent company. OBI’s majority shareholder is the Tengelmann Group. This distinction matters when assessing the appointment: it is a move between competing businesses, rather than an internal transfer within the same corporate group.

According to Handelsblatt, Kingfisher has previously tried to establish a foothold in Germany. Gundel’s appointment alone does not, however, indicate a new strategy for entering the German market. What has been announced so far is a change at the top of the group.

What franchise partners should watch

For existing and prospective OBI franchise partners, the priorities are the permanent leadership appointment and delivery of the announced growth plans. Tengelmann’s message of continuity and the interim internal appointments should be distinguished from any concrete decisions made by the future leadership.

The leadership change alone does not imply new contractual terms or revised investment requirements for franchise partners. It would be equally premature to infer that expansion will be halted or accelerated. What is clear is that franchising was an explicitly highlighted part of OBI’s development under Gundel; the search for a permanent leader for the next phase continues.

Practical tip: Anyone considering joining OBI or opening additional stores should obtain direct confirmation of the current status of planned openings, the relevant contacts and firm project deadlines. What matters is a clear commitment to the individual project, not speculation about the leadership change.