Karstadt-Kaufhof's CEO issues caution regarding potential lockdown
Galeria Karstadt Kaufhof Accelerates Online Business Amidst Lockdown Fears
Galeria Karstadt Kaufhof, a leading department store group, has announced its plans to rapidly expand its online business in response to the ongoing Corona pandemic and potential lockdowns. This development comes as the company's current online sales make up less than 5% of its total sales.
Miguel Muellenbach, the new CEO of Galeria Karstadt Kaufhof, made these comments to the "Frankfurter Allgemeine Zeitung" (Tuesday edition). He expressed concerns about the potential impact of lockdowns on stores and city centers, stating that a lockdown would cause massive store closures and have negative consequences for many city centers.
Despite these concerns, Muellenbach clarified that shopping is not the problem. He emphasized that the company is working hard to improve the online shopping experience, addressing the ongoing difficulties in the availability of products at their online store.
The expansion of the online business is a process that doesn't happen overnight. Signa Holding, the owner of Galeria Karstadt Kaufhof, has already invested high three-digit million amounts in the company to support this venture.
In a positive development, the company's online share of sales has grown in recent weeks. However, Galeria Karstadt Kaufhof is still far from the online sales numbers common in the market for certain product categories like electronics or clothing.
Muellenbach also addressed the issue of store closures due to rising infection numbers. While there are no publicly disclosed plans to close specific cities or stores, he warned of a renewed closure of stores in city centers if the infection numbers continue to rise.
In a significant move, the creditors of Galeria Karstadt Kaufhof have waived claims of around 2 billion euros, providing the company with much-needed financial breathing space during these challenging times.
Muellenbach expects the company to generate its own financial resources moving forward, emphasizing the importance of a strong online presence in achieving this goal. Despite the challenges, he remains optimistic about the future of Galeria Karstadt Kaufhof.
