German department store Galeria to streamline estate, 52 branches to close
German department store chain Galeria Karstadt Kaufhof has announced plans to close 52 of its 129 branches as it looks to streamline its estate to “secure” its future.
The branches will be closed in two waves - on June 30 of this year and January 31 next year - with a total of around 4,000 employees affected, and a further 300 jobs lost at Galeria's Essen headquarters.
The company has been hit by a variety of factors in recent years, including the pandemic, the war in Ukraine, rising inflation, and a drop in consumer spending in Germany, it said in a German press release.
The retail group said the decision came despite “intensive negotiations with landlords and cities”.
It said it will now present its new concept to customers in 77 locations, with a focus towards more local and regional needs, and said it will “comprehensively modernise” those branches over the coming three years.
It also said it will position itself more clearly in the clothing, beauty, and home segments.