This is already the third insolvency at Galeria – but now things are really set to get better. One of the new owners’ visions for the future: The department stores should open more often on Sundays in the future. This could be difficult indeed.
In Bonn, Galeria Karstadt Kaufhof does something special when it comes to selling school bags: they occasionally offer orthopedic advice directly in the store. An expert gives children and parents tips based on the children’s stature.
It is precisely such campaigns that Peter Zysik, as chairman of the works council at Galeria Bonn, hopes will attract customers to the city centers in the long term. “Managing directors are now called upon to be innovative in their local strategies, which will help us in the long term.”
Focus on location
According to Zysik, local sales concepts are needed. Because customer expectations can vary depending on the location: what is in demand in a small town may differ from the needs of customers on a luxurious shopping street like Königsallee in Düsseldorf.
“It is crucial that the customer finds the right goods at the right price in the right place,” says Zysik. As an example of a local sales strategy, he cites events during the carnival season for the Bonn location. This had been neglected for several years.
Up to 100 million euros investment
The new owners of Galeria Karstadt Kaufhof want to invest up to 100 million euros over the next two to three years. Buyers say the investment is planned for modernization WDR.
It has been known since the beginning of April that a consortium made up of the US investment company NRDC and the entrepreneur Bernd Beetz’s investment company BB Kapital SA wants to take over Galeria. And they bring new ideas with them. The proposal: In the future, every house could open once a month on a Sunday and thus enliven the city centers as a crowd-puller.
Sunday shopping as a strategy
“We record significantly higher sales on Sundays when shops are open compared to the usual hours on a normal weekday,” confirms Hans-Peter Neußer, branch manager of Galeria Karstadt Kaufhof in Düren. “On Sundays, entire families come together to shop together. It becomes a real family event.”
But it will be difficult to get more shopping on Sundays. In most cities, unions and churches are fighting against Sunday openings – ver.di even repeatedly takes them to court.
Peter Zysik, chairman of the works council at Galeria Karstadt Kaufhof in Bonn, is also critical of the idea: “As an employee representative, I am skeptical about Sunday work by colleagues who often already work under challenging working conditions.” For him, the debate about Sunday work is not a top priority for the future of Galeria and the city centers.
There has been bad news for many employees recently, as 16 of the 92 department stores still in existence are to close and around 1,400 of 12,800 jobs are to be lost.
Criticism of the department store concept
Retail expert Hanna Schramm-Klein is also unsure whether such Sundays would liven up the city centers more. “Shopping on Sunday is not a shopping trip; people want more of an experience trip. The problem is that a visit to most of the department stores that currently exist is not an experience trip.”
She also expresses fundamental concerns about the department store concept. Because most of the remaining department stores would no longer correspond to current consumer behavior. “The range and the advice offered are designed for outdated consumer behavior. It is too big, too much and there is not enough special.”
The range is changing
According to media reports, Galeria’s product range is also set to change: they want to attract more customers with cosmetics, handbags and women’s underwear – and supermarkets could move into many locations. This is currently being negotiated with Rewe, for example. Schramm-Klein thinks specialization is a good idea that could convince customers.
The skeptical assessments of some experts spur managing director Hans-Peter Neußer from Düren. He wants to prove the opposite to those who have been portraying department stores as outdated for years. His goal is to show that the department store can continue to be profitable as a sales model.