The German retail chain Globus has announced the sale of five stores to competitor Kaufland. This move will result in job losses, particularly in departments that Kaufland does not plan to continue operating.
Sale impacts 800 employees across five locations
Globus, a family-owned retail group, has revealed plans to sell five of its stores to Kaufland. This transaction, pending approval from the Federal Cartel Office, will affect approximately 800 employees currently working at Globus locations in Bedburg near Cologne, Chemnitz, Essen, Neubrandenburg, and Wesel.
A Globus spokesperson informed t-online that while Kaufland has promised to retain “most of the jobs,” certain positions are at risk. Unlike Globus, Kaufland does not operate in-house butcher shops and bakeries in its stores. Consequently, these departments will not continue under the new ownership.
Globus seeks solutions for affected employees
For employees whose positions will be eliminated, Globus is exploring alternative solutions within the company. The spokesperson stated, “We plan to offer positions at nearby Globus locations to those whom Kaufland cannot retain.” However, specific numbers regarding affected employees were not disclosed due to ongoing discussions.
This announcement comes as Globus revealed its decision to divest five of its 65 stores across Germany due to financial losses. The company, headquartered in St. Wendel, Saarland, stated in a press release that these locations “cannot be operated economically.”
Globus expansion and market challenges
In April 2021, Globus acquired 16 stores from the insolvent Real chain, while Kaufland also purchased several locations. However, insider reports suggest that some of the acquired stores have underperformed significantly compared to Globus’s expectations.
Founded in 1928 as a colonial goods store, Globus now employs approximately 20,000 people. The company faces the challenge of integrating newly acquired stores while maintaining profitability in a competitive retail landscape.
As the sale proceeds, both Globus and Kaufland will need to navigate the transition process carefully, balancing business needs with employee welfare in a changing retail environment.
