Karstadt and Kaufhof worked together. Without closing the warehouse, the new retail giant wants to stop in the future – but many employees have to leave. Essen/
Karstadt and Kaufhof worked together. Without closing the warehouse, the new retail giant wants to stop in the future – but many employees have to leave.
Essen/Cologne – The failed Kaufhof department store chain will be dismantled following a merger with rival Karstadt around 26.00. Karstadt made the announcement on Friday in Essen. CEO Stephan Fanderl said that in its current state, Kaufhof is necessary to survive, “in the long term.”
Approximately 1,000 full-time jobs will be eliminated in management and administration structures, with an additional 1,600 full-time jobs in stores, the group announced. Closures related to the renovation are planned, however, to be temporary. Several newspapers reported on it earlier.
Kaufhof will also save on wages – the gradual abolition of tariff binding
The main management and administrative structures of the group were to merge the planned houses in the future at the previous headquarters of Karstadt in Essen, Germany. Set up a Competence Center for Digitization and E-Commerce at the location in Cologne, the former headquarters of Kaufhof. In addition, control them from here, from the catering and food industry.
In order to save costs, the Kaufhof will immediately come out additionally, from the tariff obligation. The company is looking for an individual, collective solution, carrying bills for necessities in the Kaufhof economy, that would be it.
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Karstadt and Kaufhof: two sick giants
Fanderl should create a competitive retail giant from two failing department stores, even in the age of the Internet. He is under a lot of pressure. According to Karstadt, Kaufhof’s Christmas business remained well below expectations. Also in Karstadt, according to information from well-informed circles, it did not go well.
The merger of Karstadt and Kaufhof was born out of necessity. For years, Kaufhof and Karstadt have been making the unstoppable rise of discounters like Primark and online retailers like Amazon or Zalando, as well as competition from large shopping centers. By merging, the two chains hope to improve their competitive position.
most of the new social enterprises in former Karstadt owner René Benko. Kaufhof, owner of the Hudson’s Bay Company, remains a minority shareholder in the Board.
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Updated date: January 26, 2019, 12:03 p.m