The Galeria department store chain is moving forward, but with a reduced network of stores. Nine branches are closing, while 83 department stores remain open. This restructuring marks a significant change in the company’s operations following its recent insolvency proceedings.
As planned, the Galeria department store chain is closing nine of its branches by the end of this month. This decision was made as part of the recently concluded insolvency proceedings. The affected locations include two in Berlin and others in Essen, Wesel, Augsburg, Regensburg, Trier, Leonberg, and Chemnitz. Approximately 800 of the 12,800 employees will lose their jobs due to these closures. Some branches, such as those in Essen and Wesel, had already shut down during the second-to-last week of August.
Out of the former 92 stores, 83 department stores will remain open. The company has announced on its website that gift cards and customer cards will continue to be valid and can be used in any branch and online. Customers can return or make claims for items purchased in any of the closed stores at any other branch. Online, it’s possible to generate new return labels.
New ownership and rebranding
Since August 1st, the department store group has new owners. The US investment company NRDC and an investment firm of entrepreneur Bernd Beetz now control Galeria S.à r.l. & Co. KG, as the new company name states.
The names Kaufhof and Karstadt have been removed from the company names. The new company sign, which only reads Galeria, has already been gradually introduced. However, some branches still have old signs with Kaufhof or Karstadt visible. The new logo is set to be implemented everywhere as part of upcoming renovations.
Expert skepticism about the relaunch
Retail expert Carsten Kortum is skeptical about the relaunch: “I don’t see a big breakthrough. So far, little is known or visible about what the new owners plan to do. A lot of money would need to be invested in the company, but that’s apparently not planned,” said the professor from the Baden-Württemberg Cooperative State University Heilbronn. In his view, Galeria needs a new, younger business model. “I’m unsure if that will happen. The consumer would painfully notice its absence.”
