A new concept is supposed to save the ailing Galeria department store group.
The traditional brands Karstadt and Kaufhof probably no longer play a role.
Essen - Even a government loan of 460 million euros was not quite enough: In the course of the corona crisis, Galeria Karstadt Kaufhof had to close rows of branches.
Now the ailing department store giant is daring to restart.
This was announced by CEO Miguel Müllenbach in the
Handelsblatt
.
The brands Karstadt and Kaufhof probably no longer play a role in his plans, as he suggested.
Galeria Karstadt Kaufhof lost 1.8 billion euros in sales in the lockdown.
It is uncertain how quickly sales will come back, said Müllenbach.
His company is therefore negotiating a second state loan with the federal government and is putting a future concept on the table.
Müllenbach calls it "Galeria 2.0".
Up to 60 of the 131 locations are to be completely rebuilt at the end of October, the rest partially.
Galeria Karstadt Kaufhof plans to divide its department stores into three categories in the future: “World city store, regional magnet and local forum”.
There are already pilot branches in Frankfurt am Main, Kassel and Kleve.
Galeria Karstadt Kaufhof with a new start in autumn: Less retail space, more service
“Overall, we are planning investments of around 600 million euros in the medium term,” explained Müllenbach.
The department store group wants to reduce its own sales areas in order to create space for service offers - something for city services, e-bike stations or parcel counters.
An app should complement the offer.
"We want to become the networked heart of the city center - with concepts that are precisely tailored to the local location."
In the interview, Müllenbach spoke of “feel-good locations” where people not only buy different groups of goods and use services, but also enjoy culture and gastronomy.
"We will merge with the city centers."
"Galiera 2.0" is supposed to save the department store group - Kaufhof and Karstadt soon to be history
The new concept is to be implemented at the end of October, accompanied by a new, revised online
presence for
the entire group under the domain
galeria.de
. In future, this name will also appear more and more on the facades of the group houses in German city centers. The branches are currently still called Kaufhof or Karstadt. The traditional brands apparently no longer play a role in Müllenbach's plans for the future, as he indicated in the Handelsblatt: "It's time that you can see from the brand that we are now a company," he said.
