Galeria Kaufhof and Karstadt seal the merger deal

Galeria Kaufhof and Karstadt seal the merger deal

Signa and HBC will form a new retail company, which will include Galeria KaufhofKarstadt Warenhaus, the entire retail business of HBC Europe (Saks OFF 5TH, Galeria Inno in Belgium, Hudson’s Bay in the Netherlands), as well as Karstadt Sports and the entire food and catering departments of both companies (Dinea, Galeria Gourmet, Karstadt Feinkost, Le Buffet). It will thereby have 24established city-centre locations in Europe and employ a total of 32,000 staff. Signa Retail will hold 50.01% of the shares of the holding company and HBC 49.99%. The newly formed retail company will be led by Dr Stephan Fanderl, current CEO of Karstadt & Signa Retail, and include representatives from Galeria Kaufhof and Karstadt. The strategic goal of the joint venture is to make the new entity fit for the future and to develop one of the leading omnichannel retailers in the digital age.

             

HBC and Signa Group have come to an agreement with the corresponding contracts already signed. The closing of the transaction is subject to approval from the antitrust authorities.

 

Helena Foulkes, CEO of HBC: “We are very pleased to partner with Signa and are confident in our direction for the future. This partnership is a smart, strategically sound opportunity to equip both companies with the capabilities to strengthen operations and overcome the challenges in the German retail market. We believe it is the best structure for customers, HBC, our associates/employees and city-centres where we operate. Together, we will focus on seizing opportunities in the market, evolving the business model, and adapting it to meet changing consumer needs.”

 

Dr. Stephan Fanderl, CEO of Karstadt Warenhaus und Managing Director of SIGNA Retail: “We are looking forward to partnering with HBC. With this joint venture, two iconic companies have found an ideal solution to position themselves for success in the highly competitive German and European retail market. We are now entering a phase of hard work, major operational challenges and demanding market changes. Together, we can make better use of the opportunities of digitization and the strengths of inner-city retailing than ever before. In the future, our joint department stores will be accessible in the immediate vicinity to 80% of urban customers and reach out to more than 20 million customers in our loyalty programs.” 

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