The first phase of the chain's optimization will occur in the summer of 2023.German department store chain Galeria Kaufhof has announced plans to reduce its retail business. The company will close 52 of its 129 operating stores nationwide.
The first phase of the chain's optimization will occur in the summer of 2023, with the second phase in January 2024. As part of the program, Galeria Kaufhof will reduce more than 4 thousand employees - they will receive compensation for two monthly salaries. In addition, the retailer will lay off about 300 office employees in various divisions.
Galeria Kaufhof has been going through difficult times in recent years. In the fall of 2022, the retailer was forced to begin its second bankruptcy protection proceeding in three years.
In a new business optimization strategy, the company expects to emerge from the crisis by retaining its 77 most viable stores. Changes await them shortly, which will be announced additionally. Department stores will sell merchandise "more relevant to local and regional needs."
As of early 2023, Galeria Kaufhof had 129 stores and an estimated 17,400 employees. The company's official website has already published a complete list of stores that will be closed by June 30, 2022 (21 department stores) and January 31, 2024 (31 stores).