A good year after bankruptcy, the Galeria department store chain is seeing positive developments. For the first time in more than ten years, the company says it has completed a financial year in an operationally profitable manner – i.e. generated a profit from ongoing operations. The operating result is more than 100 million euros above the level of previous years, as Galeria announced when asked by the German Press Agency. Exact numbers were not given.
In the financial year that ended at the end of September, the 83 branches achieved sales of more than two billion euros. All locations were “in the black” in their operational business.
Managing director Christian Sailer is satisfied with the first year after bankruptcy: “This underlines the stability of our new business model and shows: Galeria is functioning on its own again.” The company has proven that the department store concept has a future. According to Sailer, total sales were higher, driven by strong online business. Galeria left it open how high sales were in the previous year.
Cooperations with Lidl and Decathlon
At the beginning of 2024, Galeria had to file for bankruptcy for the third time in four years. Nine houses were closed. The retail chain has been owned by the US investment company NRDC and an investment company owned by entrepreneur Bernd Beetz for twelve months. The company headquarters has been in Düsseldorf since this year.
Galeria cited, among other things, an improved cost structure as reasons for the upward trend. The department store group had recently been significantly slimmed down in the wake of bankruptcy. Through negotiations with landlords, the rent burden has fallen significantly.
The discounter Lidl and the sporting goods retailer Decathlon have taken over sales space in some Galeria stores after bankruptcy. According to Sailer, they bring new target groups and more frequency. The company also hopes that its partnership with the Payback bonus program will provide additional impetus.
Nevertheless, the managing director still sees a need for improvement – for example in digital integration and addressing younger customers. According to the company, there are currently no plans to close any further branches. Galeria employs around 12,000 people.