Galeria Karstadt Kaufhof's Future Shines Brighter with buero.de's New Investment
Good news for Galeria Karstadt Kaufhof! Amidst the rocky terrain of real estate investor René Benko (46), who took over the department stores with Signa in 2019, a glimmer of hope emerges.
A New Horizon in Store
The plan is to kickstart this venture on February 1, 2024, with 20 locations, followed by an additional 20 on August 1, 2024, and the remaining on February 1, 2025.
A Closer Look at the Proposed Deal
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Galeria Karstadt Kaufhof has granted buero.de the responsibility of managing sales areas for office and school supplies, catering to over 90 locations nationwide with approximately 30,000 square meters of sales space. This collaboration results in the formation of the largest stationary retail specialist in Germany.
The alliance benefits Galeria Karstadt Kaufhof through various aspects:
- Buero.de will handle the procurement, stocking, and reordering of goods in the double-digit million range, saving Galeria from having to foot the bill (25 million euros in personnel costs).
- Approximately 1,100 individuals at Galeria Karstadt Kaufhof retain their jobs, and buero.de shoulders additional fixed costs in the stores.
Fostering a Fruitful Partnership
Project teams from both Galeria Karstadt Kaufhof and buero.de have been collaborating since late October, and early signs suggest substantial progress. The alliance is reportedly built on a foundation of trust.
Unexpected Allies in a Changing Market
A potential partnership between Galeria Karstadt Kaufhof and buero.de also represents a reunion of sorts. On one hand, we have René Benko, the former Kaufhof owner, and on the other, buero.de's CEO, Markus Schön. The latter is known for his resilience, having recently taken over 14 locations of a retail chain in the Ruhr region.
Will Schön's operations rescue a portion of Benko's ailing real estate and retail empire? Only time will tell. Given that buero.de is debt-free, industry experts anticipate significant cost and investment commitments in the millions.
Collaboration between Galeria Karstadt Kaufhof and buero.de could save Galeria around 25 million euros in personnel expenses. The resulting merger would yield the largest stationary retail specialist store in Germany for office and school supplies.
Note: The provided sources do not mention any existing partnerships or collaborations between Galeria Karstadt Kaufhof and buero.de. The data provided revolves around Galeria Karstadt Kaufhof's challenges in the retail sector due to digitalization and COVID-19, its recent insolvency proceedings, and efforts to explore new uses for vacant properties through adaptive reuse concepts, such as vertical farming.
