6 October 2020
The Weekly

The restructuring and insolvency proceedings at Galeria Karstadt Kaufhof have been completed. The group has had to shed as many as 4,000 jobs and 40 stores and is now allowed to restart with €2bn less in debt. Some 130 department stores remain open, considerably more than was foreseen in the original restructuring plan. Many landlords as well as local authorities have made substantial concessions to prevent new craters of vacancy in the German shopping streets. The relaunch now includes plans to massively expand online and also to adapt the assortment more locally. Up to now, department stores have generated barely 5% of their turnover from e-commerce.