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Galeria (department store)

Galeria (formerly Galeria Karstadt Kaufhof GmbH, German pronunciation: [ɡaleˈʁiːa ˈkaːɐ̯ʃtat ˈkaʊfhoːf]) is Germany's last remaining department store company and is described as one of "Europe's oldest and largest". The company operates under the legal name GALERIA S.à r.l. & Co. KG.

The company employs approximately 12,000 employees. Following the latest restructuring, the new owners agreed to retain more than 83 stores.

History (2015–2024)

The modern department store group was formed through the consolidation of Germany's two major chains, Galeria Kaufhof and Karstadt.

  • Kaufhof Acquisition (2015): The German department store company Galeria Kaufhof was acquired by the North American retailer Hudson's Bay Company (HBC) from Metro AG in June 2015 for 2.82 billion euros, including liabilities.
  • Merger with Karstadt (2018–2019): In September 2018, HBC and Austria's Signa Holding agreed to merge the German chains, combining HBC's Galeria Kaufhof stores with Signa's Karstadt stores. The resulting entity, officially launched in 2019 as Galeria Karstadt Kaufhof, was initially projected to form Europe's third-biggest department store group.
  • Signa Ownership: Austrian investor Rene Benko gained sole control of the Galeria Karstadt Kaufhof group in June 2019, until it filed for insolvency in November 2023.

Galeria filed for insolvency for the third time in January 2024, following the collapse of its parent, the Austrian Signa empire.

Present (from 2024)

Following the January 2024 insolvency filing, the department store was sold in April 2024 to a consortium of U.S. investor Richard Baker (CEO of HBC) and German businessman Bernd Beetz. The takeover was intended to stabilize Germany's department store group.

Restructuring

The company initiated several structural changes:

  • Headquarters Relocation: the Service Center (headquarters) is scheduled to move from Essen to Düsseldorf around September 1, 2025. This relocation ends Galeria's presence in Essen after more than 120 years. The new location is expected to accommodate the 690 employees.
  • Leadership: Christian Sailer was appointed the new Chief Financial Officer (CFO) effective October 1, 2024. The company also appointed Antonio Negro as new Chief Procurement Officer.

New concepts

The new management focused on adapting its business model in inner cities:

  • Retail Collaborations: Galeria initiated partnerships to introduce new tenants and uses. For example, the chain partnered with discounter Lidl in Berlin to open markets within two remaining Galeria locations in Charlottenburg and Kreuzberg. Sporting goods retailer Decathlon also planned to move into some Galeria stores.
  • Customer Loyalty: Galeria announced a partnership with the Payback bonus program, allowing customers to collect points in stores and online starting October 1, 2025.
  • Store Repurposing: Many former Karstadt and Galeria Kaufhof buildings are being converted for other uses across Germany:
  • A former Karstadt Sports location on Mönckebergstraße in Hamburg found a new tenant in .
  • In Harburg, the former Karstadt building is being converted into a museum ("Planet Harburg") and a cinema.
  • In Dresden, the Citizens' Office moved into the fifth floor of the Galeria (formerly Galeria Karstadt) building.
  • The former Galeria Kaufhof in Trier reopened as an outlet store.

Profitability and future outlook

The ongoing structural changes, including the reorganization of leadership and the establishment of key commercial partnerships, reflect the company's focus on achieving sustainable profitability. The new management stated that operations had stabilized under the new ownership, with all stores reported to be operating profitably.

References

External links