Gallery targets monthly open Sundays
Based on a news article, the freshly acquired Galeria Karstadt Kaufhof owners intend to put in less money than Signa initially aimed. They're counting on opening their stores on regular Sundays to boost business and need political backing for this decision.
Galeria Karstadt Kaufhof is counting on Sunday openings as part of a renewed strategy for their department stores. Citing sources acquainted with the investor group, "Der Spiegel" notes that the new owners, US investor Richard Baker and German entrepreneur Bernd Beetz, hope to receive support from federal states and local authorities for their stores. They claim that their department chains are crucial in revitalizing urban centres. Their plan: to allow each store to open once a month on a Sunday. This way, Galeria can become a tourist attraction for these cities and hike up its own sales.
"Der Spiegel" says that Baker and Beetz are aiming to invest up to 100 million euros over the next two to three years to upgrade the stores. Previously, Signa had promised 200 million euros in March the previous year, half of it as a loan.
Meanwhile, costs are supposed to shrink, with a focus on administration. Out of 92 stores currently, 16 will be closed with a final decision from the creditors' meeting at the end of May. Though, there's optimism for the department stores in Oldenburg, Berlin-Spandau, and Mannheim, which are slated for closure, as there've been "positive developments" in talks with the landowners.
Regarding shop-in-shops, the plan is to no longer run a major chunk of the space by themselves, but let brand manufacturers rent it as separate stores. This would free Galeria from taking on product risk in those areas. Presently, the concession business only adds up to 6.7% of Galeria's recent sales of around 2.5 billion euros.
In the long run, the investors are predicting that this figure could rise to 40%. Additionally, Galeria plans to focus on 70 or so department stores for specific product categories such as perfumes and cosmetics, lingerie, handbags, shoes, and accessories. In other categories, they aim to limit the selection to successful products. Highlighting: Galeria is currently facing insolvency and is trying to reorganize itself.
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Galeria Karstadt Kaufhof is shifting its strategy to include regular Sunday openings to boost business, as highlighted in their renewed plans. This move is anticipated to attract more tourists and increase sales for their department stores. Furthermore, investments in the retail trade sector by Richard Baker and Bernd Beetz, the new owners, are predicted to total up to 100 million euros over the next few years, focusing mainly on upgrading existing stores.
To support their efforts, Galeria Karstadt Kaufhof is looking for the backing of federal states and local authorities, as they believe their department stores are vital for urban revitalization. By allowing their stores to open once a month on Sundays, they aim to tackle insolvency and reposition themselves in the market with a more diverse retail portfolio, incorporating shop-in-shops and a stronger focus on specific product categories.
Source: www.ntv.de
