- Nine galleries scheduled for closure as per the plan.
Galeria, a popular department store chain, is set to shut down nine of its branches by the end of this month, as previously planned, after going through insolvency proceedings. The affected areas include two locations in Berlin, along with Essen, Wesel, Augsburg, Regensburg, Trier, Leonberg, and Chemnitz. Approximately 800 out of the total 12,800 employees will be out of a job. It's worth noting that some branches, such as Essen and Wesel, had already closed during the second week of August.
With 83 stores still operating, the remaining outlets will continue serving customers with valid gift and customer cards, which can be used in any branch or online. Returns or complaints related to purchases made in any of the closed stores can be handled in any other branch, or new return labels can be generated online.
Since August 1, the retail giant has new owners in the form of the US investment firm NRDC and the holding company of entrepreneur Bernd Beetz, who took over Galeria S.à r.l. & Co. KG. The company name has been changed, and Kaufhof and Karstadt have been removed from it. The new logo, which only features Galeria, has gradually been introduced and will be implemented fully during upcoming renovations. Although some branches still display the old Kaufhof or Karstadt signs, these will be replaced during the renovations.
Retail expert Carsten Kortum remains skeptical about the company's future: "I don't see a major turnaround just yet. There's little information or visible evidence regarding the new owners' plans. Significant investment would be required to restore the company, but it doesn't seem to be on the agenda." According to Kortum, Galeria requires a fresh, modern business model. "Whether this will happen or not remains to be seen. Customers would certainly notice its absence."
The new owners of Galeria, NRDC and Bernd Beetz's holding company, aim to revitalize the retail chain by gradually implementing the new Galeria logo in their stores during upcoming renovations. Despite the changes, retail expert Carsten Kortum expresses doubts about Galeria's future prospect, stating that there is a lack of clear plans and large-scale investment from the new owners to turn the retail chain around.
