Galeria Karstadt Kaufhof wants to close up to 80 of the 175 branches in Germany, the “Wirtschaftswoche” reported.
This could close almost half of all Karstadt and Kaufhof branches and thousands of employees lose their jobs.
In addition, according to a report by the “Kölner Stadt-Anzeiger”, two brands in the department store chain are on the brink of extinction.
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Galeria Karstadt Kaufhof could close almost half of the 175 branches. The “Wirtschaftswoche” reports on Friday. This emerges from a reorganization concept that was presented to the company’s general works council today, the magazine writes. According to this, the employee representatives assume that up to 80 locations in Germany could be closed. Insiders estimate that this means a cut of up to 5,000 jobs, writes the business magazine.
Two brands in the department store chain were particularly hard hit: According to a report by the “Kölner Stadt-Anzeiger”, 20 of the 30 branches of Karstadt-Sport are on the brink of extinction. According to insiders, the newly founded subsidiary Atrys, which runs the travel agencies of Galeria, is hit even harder. 100 of the 130 travel agencies are to be closed. In addition, a three-digit number of jobs is to be cut in the Galeria headquarters in Essen alone, with 1,600 people currently working there. The Karstadt-Sport headquarters with 60 employees, also in Essen, is to be deleted without replacement.
Verdi union sharply criticizes plans
The Verdi union criticized the plans sharply in a message: “This is brutal! It seems that the company management and the owner are misusing the corona crisis in order to still implement their original plans for site closures and layoffs, ”throws Stefanie Nutzberger, the trade executive board member of the United Services Union (Ver.di) , the retail group. Even before Christmas, the group had guaranteed the future for the department store and thus also a location and job security in the collective agreement. “A few weeks later, the turnaround and a clear cut come at the expense of the workers. Implementing this planning would have a devastating impact on the approximately 35,000 employees at Galeria Karstadt Kaufhof and in the group, ”said Benefitberger. Employees at Karstadt Feinkost, Karstadt Sports, the catering trade with Dinea and Le Buffet and the logistics area are also affected.
In a press release by the General Works Council of Galeria Karstadt Kaufhof, it said: “The cruelty measures in the draft of the restructuring plan are hard to beat and a general attack on all employees.”
At the end of April, Galeria Karstadt Kaufhof said that locations are currently being analyzed for their economic efficiency and the respective landlords are being contacted. The group wanted to reduce the rents of its branches. Therefore, the accommodation of the individual landlords should play a role, which branches are closed.
Frank Kebekus, the court-appointed administrator and the general representative Arndt Geiwitz had already indicated that the “restoration ahead of us must be far more determined” than “we would like it to be”. The management also wrote that “unfortunately there must also be site closures and, accordingly, job cuts”, wrote “Manager Magazin”.
You can buy a mouthguard from these retailers
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You can buy a mouthguard from these retailers
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Edeka and Netto: luxury masks
Since May 11, Edeka and the discounter subsidiary Netto have also been selling luxury protective masks from Van Laack, a high-quality tailor and fashion label from Mönchengladbach. The protective masks are available from Netto at a price of 9.99 euros and from Edeka Nord at a price of 11.95 euros for the 5-pack. The Star Designer’s mouthguard filters dust and is supposed to be water-repellent on the outside and washable at 60 degrees.
Like many other retailers, Netto had already issued simple mouth and nose masks to its customers free of charge on the first day of the mask requirement. For example, the discounter has been selling disposable masks in a pack of 50 since the beginning of May.
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dm: Export stop for respiratory protection, but one-way masks
At dm, the face masks of the in-house brand Mivolis were actually firmly included in the range. “However, this is no longer available until further notice, since it is produced in France and is therefore affected by the export stop for respiratory masks of the French government, which was decided by decree,” says Sebastian Bayer, responsible dm managing director for marketing and procurement.
Since April 27, dm has been offering its customers mouth-nose protection certified according to the standard for medical devices for one euro. The issue quantity is limited to three pieces per customer. Since the beginning of this week, dm customers have also had textile masks available for regular purchase. “In addition, we would like to offer our customers further product alternatives. In the coming days, disposable masks in different sizes will be available in our dm stores, ”said Bayer Business Insider.
Photo by Rust / ullstein via Getty Images
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Aldi Süd: out of print quickly
Since April 30, the discounter has also been selling mouth-nose masks to its customers for single use. The set of 10 costs 6.99 euros. This was reported by the “Lebensmittelzeitung” (LZ). Although each customer was only allowed to purchase two packs per purchase, the masks are already sold out in many places.
“Due to the high demand, the disposable masks in some branches were quickly sold out,” said a spokeswoman for the company Business Insider.
However, further deliveries are planned for the next few weeks, according to Aldi Süd. “We ask our customers for understanding that the article can be sold out quickly due to the current situation and the associated high demand,” said the spokeswoman when we asked.
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Kaufland: Two mask types now
From now on, Kaufland offers high quality disposable masks at affordable prices in all 670 branches nationwide. “Reusable fabric masks made from organic cotton will also be available from the end of May,” says Kaufland in a statement.
The disposable masks are available in two versions and packaging sizes: Masks of the DIN standard for mouth and nose protection in a 10-pack at 7.99 euros and in a 20-pack at 13.99 euros are fabric masks made of organic cotton “Made in.” Germany “available. The fabric masks are available in different designs and also for 3.49 euros each.
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Lidl: Most of it sold out
“Lidl sold a large part of the disposable masks that were delivered in the first stage on April 30th across Germany,” said a spokeswoman for Lidl Business Insider. Regionally, disposable masks are still available in a few branches, the discounter says.
Simple mouthguards were available in packs of 50 at cost price, at a unit price of 33 euros per pack. This means that Lidl does not earn a margin on the sale. Customers can only purchase one pack per purchase.
Over the next few weeks, more mouth-to-nose covers, such as multi-use fabric masks, will be delivered, which will be offered in all Lidl stores, the spokeswoman said.
Manuel Esteban / Shutterstock.com
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Rewe: 30 million masks by the end of May
Since May 2, the Rewe stores throughout Germany have gradually started selling protective masks. The disposable masks are offered at a cost of 16.99 euros for 25 pieces. Now, more and more branches are to be supplied with masks, said a spokesman for the Rewe Group Business Insider. “By the end of May, we will have around 30 million masks nationwide in our Rewe, Penny and Toom stores,” said the spokesman. Further deliveries were ordered. The Toom hardware store also belongs to the group of companies.
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Penny: 25 pieces for 16.99 euros
The Penny discounter also belongs to the Rewe Group. The same measures apply here as for the Rewe supermarket, meaning that since May 2, disposable masks have gradually been available in all branches at a price of 16.99 euros for 25 pieces. If these are sold out, new deliveries have already been ordered, said the spokesman for the group.
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Real: from May 11th also surgical masks
The Real supermarket chain has been selling sets with five textile masks each since 4 May, as the “Berliner Morgenpost” reports. The price per pack is said to be 19.99 euros. From May 11th, a 20-pack of surgical masks will also be on sale at Real.
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Rossmann: 10 masks for 22 euros
The other large drugstore chain in Germany, Rossmann, plans to gradually sell masks in its first branches this week. In the Rossmann online shop you can buy reusable mouthguards from Fynn Kliemann. Customers pay 22 euros there for ten masks.
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Aldi Nord: Checks options for sales
Aldi Nord does not currently sell any protective masks in the markets. However, that could change soon: “We are currently examining the procurement of larger quantities of protective masks or everyday masks to equip our employees or for sales,” a representative from Aldi Nord told Business Insider. The retailer is assuming that “the use of face masks or everyday masks will become the new normal in the coming months wherever many people meet.”
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The corona crisis is causing great difficulties for the department store chain, which is already under pressure. There were already losses before, but the group lost around 80 million euros in sales per week during the closure of the branches. By the end of April, the shortfall had grown to more than half a billion euros, and the company management is expecting a total loss in sales of up to one billion euros.
Numerous jobs are at stake
Many of the approximately 28,000 employees will have to leave the company, wrote “Manager Magazin” at the end of April. Also, that Verdi had the inventory of all, including the unprofitable branches, fixed in a collective agreement until 2024 at the end of December, should no longer help.
The company, which belongs to the Signa group of the Austrian billionaire René Benko, already fled under the protection of the German government because of the Corona crisis. According to “Manager Magazin”, Signa recently invested around 500 million euros in the merger of Karstadt and Galeria Kaufhof. Benko is said to have added another 140 million euros recently.