- Nine branches of the gallery due for scheduled shutdown
The popular department store chain, Galeria, is set to shut down nine of its branches by the end of this month, as part of a bankruptcy process they recently went through. This affects stores in places like Berlin, Essen, Wesel, Augsburg, Regensburg, Trier, Leonberg, and Chemnitz, with around 800 out of their 12,800 employees losing their jobs. Some stores, such as those in Essen and Wesel, had already closed their doors during the previous week in August.
However, 83 out of their original 92 stores will continue to operate. Customers can still use their gift cards and customer cards at any store or online, as Galeria announced on their website. Returns or complaints about items bought from the closed stores can be made at any other location, or customers can generate new return labels online.
As of August 1st, the company has new owners - the US investment firm NRDC and entrepreneur Bernd Beetz's holding company. They now control Galeria S.à r.l. & Co. KG, renaming the company. The names of Kaufhof and Karstadt have been dropped, with Galeria being the only name featured on new signage. Renovations are planned, where the new logo will be introduced.
Retail expert Carsten Kortum is not optimistic about Galeria's future. He says, "I don't see a major turnaround. Not much is known or seen about what the new owners plan to do. It would require a significant investment in the company, but that doesn't seem to be the plan." According to Kortum, Galeria needs a fresh, younger business model to stay competitive. He adds, "I'm not sure if that will happen. The consumer would certainly notice if it doesn't."
Despite the closure of the Galeria store in Chemnitz, residents can still shop at other nearby department stores or shop online using their gift or customer cards. The city of Chemnitz continues to have a vibrant retail scene with various stores offering similar products and services.
