The retail giant feels a reluctance to buy after the Russian attack. The restructuring of the group continues. And a new department store is set to open in the fall.
The Ukraine war is also causing problems for Germany’s last major department store group, Galerie Karstadt Kaufhof. “We were well on our way to February 24th. But the moment the war of aggression began, there was immediate reluctance to buy, which was immense,” said the head of the retail giant, Miguel Müllenbach, of the German Press Agency. In the meantime things are going up again. “But it’s still distressing.”
After all, the department store group tends to sell the finer things in life, not everyday items – and these were the first items on which savings were made in view of rising energy prices. He is confident that business will develop positively again in the future, said Müllenbach. But at the moment the entire industry is still struggling with headwinds.
The reluctance to buy because of the Russian war of aggression hit Galeria at a moment when the effects of the corona pandemic were beginning to subside. The manager reported that visitor frequencies in the city centers and department stores gradually increased again after the end of 2G, 3G and the obligation to wear masks. However, they would still have been 20 percent below pre-pandemic levels.
Galeria’s renovation plans
Meanwhile, the corporate restructuring at Galeria continues. In autumn, the department store group, which has made headlines in recent years with branch closures, even wants to open a new branch in the Tegel Center in Berlin. The lease has already been signed, said Müllenbach. This week, the department store chain also celebrated the reopening of the branch in Euskirchen that was completely destroyed by the flood disaster last year. Further branch conversions are to follow later this year.
The department store in Fulda is to be completely redesigned. The branch at Munich’s Marienplatz is to be partially modernized. In addition, Galeria intends to launch the prototype for a new store concept in shopping centers this year. In total, at least 6 of the approximately 130 branches are expected to be more or less extensively renovated in 2022, said Müllenbach.
Müllenbach admitted that the modernization of the branch network was progressing somewhat more slowly than originally planned. However, this is not least due to the fact that the procurement of the materials required for the conversion has become more difficult due to the global supply bottlenecks. The money for the renovation is available.
At the same time, the manager announced that the department store group was in the process, together with its owner Signa, “to push ahead with some very large developments that not only literally mean the creation of large branches, but also a significant upgrading of the respective city center”. Müllenbach did not give any details. But it is about making the department stores and their surroundings more attractive through more mixed use. (dpa)