Monday , January 30 2023

Karstadt and Kaufhof may go together.


BONNGermany gets a new department store giant: The Federal Cartel office gave a green light for the merger of Karstadt and Kaufhof. Andreas Mundt, Antitrust President, said in Bonn, "We have been focusing on this project, and from a consumer perspective, from a manufacturer and supplier perspective, competition is overwhelming." Not only do Karstadt and Kaufhof have many competitors in fixed business, online trading also creates additional competitive pressures.

The new retail giant will employ about 32,000 people with 243 stores across Europe. Under the new owner's umbrella, the Karstadt sports store as well as the Kaufhof and Karstadt branches in Germany, the Hudson's Bay department store in Europe, the recently established Belgian Galeria Inno department store Saks Off 5th Avenue, I have a provider.

Employees were not concerned because of the threat of job loss and could not make a decision. Karstadt President, Councilor Jürgen Ettl, urged owners and management to take all possible measures to protect the work of all employees. Cities with two branded department stores in close proximity require a particularly smart solution.

Local governments also observe developments in complex emotions. Cities emphasized Helmut Dedy's City Day CEO, "All department stores remain as long as possible after the merger." Because large department stores are important to the charm of the city. Norbert Portz of the City and Community Federation also appealed to businesses to prevent "clear cuts" in the city center.

It is still unclear at this time that mergers will bring workers and communities. There is no expected number of jobs and there are no employee signs available. But René Benko, owner of Karstadt, recently said that "we have to rehabilitate, but we will try to fight for every branch and put it in a black man."

The merger was inevitably born. For years, Kaufhof and Karstadt have been victorious in low-cost providers such as Primark and online retailers such as Amazon or Zalando, as well as competitions in large shopping centers. Through the merger, the two chains hope to gain competitive advantage. Bundling of purchasing power should ensure that Kaufhof and Karstadt get better conditions from their suppliers. And, according to industry experts in the administration, data processing and logistics sectors, we were able to save a considerable sum of money. The new department store giant will be led by former Karstadt President Stephan Fanderl.

The Kaufhof owner, HBC, stressed that the antitrust authorities decided that the two companies would create conditions to strengthen the business and address the difficulties of the German retail sector. At first I did not receive any comments from the signatories of Karstadt owner Benko.

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