Fight for survival: Galeria Karstadt Kaufhof in the crisis!

Fight for survival: Galeria Karstadt Kaufhof in the crisis!

The situation in German retail remains tense, especially for classic department stores like Galeria. March 15, 2025 shows that the company is fighting with considerable challenges. According to Saarbrücker Zeitung remained. The business prospects seem cloudy, especially for the branch in Saarbrücken, which is considered a glimmer of hope within the department store landscape.

The sales at Galeria fell by around four percent in the Christmas business in 2023 compared to the previous year, while January 2024 recorded a decline of almost five percent. The managing director Olivier van den Bosssche reported an increased operational operating result, due to massively reduced costs in the corporate structure. Despite these measures, the management expects a failed sales target of 2.5 billion euros for the 2024/25 financial year.

bankruptcy and business adjustments

The difficult economic situation meant that Galeria registered bankruptcy on January 9, 2024 for the third time within three years, so Tagesschau . The aim of the application is to search for a new owner, while discussions are underway with potential investors. The leadership of Galeria sees the bankruptcy application as a “liberation”. However, this happens against the background that insolvencies from the parent company Signa further burden the operational business.

In the course of the cost cuts, the company released around 1,400 employees, 450 of them from the central administration, which was now moved to Düsseldorf. Rents for 83 locations were reduced by around 80 million euros. According to Bernd Beetz, co -owner, the aim is to write black in the future.

market development and future opportunities

The market development for department stores also shows a general trend. In 2023, the sales and department stores in Germany fell by 3.9 % compared to the previous year, while inpatient retail recorded a sales plus as Destatis . The shipping and online trade, on the other hand, experienced a rapid growth thrust of 170.1 % since 2003.

In this difficult competitive situation, the Karstadt branch in Saarbrücken is considered a potential bright spot. Andreas Lallemand, chairman of the works council, was optimistic about the future prospects, even if the challenges for the entire industry are enormous. Galeria currently employs around 12,000 people at 83 locations, while another 40 branches had to be closed after the last bankruptcy. These restructures clearly indicate the changing landscape in retail.

Despite all the adversities, there are approaches to leave the loss zone soon. The conversations with potential investors and the internal savings could soon bear fruit as long as management continues to recognize the signs of the times and act accordingly.