Difficult Advent season for Galeria employees

Trade - Difficult Advent season for Galeria employees

The door of the Galeria store on Düsseldorf's Königsallee does not stand still. Many people leave the building with large shopping bags, others enter. The department store is well filled. Christmas music is playing from the loudspeakers.

On the other side of the street, the Carsch building lies behind a construction fence. It is to be converted into a luxury department store for the KaDeWe Group. But according to observers, nothing has happened here for weeks. Since the insolvency of Signa Holding, it is uncertain what will happen next.

The lively department store and the dreary construction site: two places that couldn't be more different. These days, however, they symbolize the entire spectrum of the Signa universe. What's next? This question has been on the minds of the approximately 13,800 employees of Galeria Kaufhof Karstadt in particular since it was announced at the end of November that Germany's last major department store chain could soon be up for sale.

What do the employees think about the situation and their future? Many of them feel little need to speak out. The employees are afraid of incurring the wrath of their management by making public statements. They are worried that colleagues might subsequently accuse them of having harmed the continued existence of their store. Many are convinced that we have the best chance if we keep our heads down.

"Who knows how long this will last"

"After the last insolvency, many people had renewed hope, which has now been dashed. It's particularly bitter for the employees because it's not their fault," says Ulrich Wiegard, Chairman of the Works Council at the Galeria store on Hermannplatz in Berlin. He fears that employees will leave the company prematurely in view of the uncertain situation. Many had already left during the last insolvency.

Wiegard reports on customer comments during the current Christmas season. "Some are asking if they can get an item at a reduced price." Others wanted to know when the store would close. According to Wiegard, the department store on Hermannplatz is being supplied with goods as normal, but some suppliers have recently started insisting on advance payment. "You go through this Christmas period with a queasy feeling. Who knows how long this will last." It would be good if an investor could be found, says Wiegard.

Galeria says it communicates openly with its employees. A spokesperson says that employees are constantly informed by the store management - about good sales as well as the situation at Signa. "It was also explained that we are concentrating our resources on our core business before Christmas, for example by continuing to hire temporary staff. Because we are now, as in October and November, well above the previous year's sales."

"Employees are noticing a positive change"

Thomas Vieweg, Head of the Works Council at the store in Nuremberg, confirms this. Galeria has developed very well nationwide in recent months. "The realignment is starting to bear fruit. The employees are noticing a positive change, a new spirit and a different approach from the management." Many things, such as the supply of goods, have improved significantly.

The department store has been said to be dead so often, says Vieweg. But Galeria is "still the only place where you can buy almost everything under one roof". Despite everything, Vieweg is optimistic about the future. It is important that sales are right, he says, as this secures liquidity. "What we can influence is the business and that is going well. Christmas business has started extremely well."

Retail expert Johannes Berentzen does not believe that Galeria can be rescued and believes that filing for insolvency in the spring is unavoidable. Nevertheless, the head of retail consultancy BBE is positive about the job prospects for employees after a possible break-up. "We are experiencing a pronounced shortage of skilled workers in our projects with retailers, regardless of the sector. Good advice is one of the most important differentiators for bricks-and-mortar retail," says Berentzen. Those who are flexible will also find opportunities for a new start in other sectors such as the catering or hotel industry.

"What will become of us?"

Joffrey Kallweit hopes that the employees will not have to reorient themselves. The head of the works council at Galeria in Dortmund talks about many colleagues in his store. The "old warhorses" have been with the company for more than 20 years, and some have experienced three insolvencies. The store has been on a closure list twice and has been closed twice - most recently in May, when an agreement was reached with the landlord at short notice.

"The mood is not good, people are insecure, but they're not letting themselves down," says Kallweit. Many come to him and want to know what will happen next. "They ask: what will happen to us?" Nevertheless, he notices a certain calmness among many employees because they have experienced all of this a few times before. Kallweit also sees a clear upward trend at Galeria. "We were all in a really good mood recently, so this is a real damper." Kallweit is nonetheless combative. "We've overcome so many crises, we'll get through them too."