2024-09-20 03:13:22
The department store chain Globus is divesting itself of several locations. The group is selling five branches to its competitor Kaufland. This move had been speculated about for some time.
Industry circles had been puzzling over this for weeks: Now the management of the department store group Globus has announced the sale of several branches. According to a press release, the family-run company is selling five of its 65 branches in Germany after making losses.
Accordingly, the stores affected will go to competitor Kaufland. According to Globus, this includes the stores in Bedburg near Cologne, Chemnitz, Essen, Neubrandenburg and Wesel. However, the sale still has to be approved by the Federal Cartel Office, it says.
The Globus management assured that all jobs would be retained. The new operator has promised this. The management informed the workforce and trading partners of the decision to sell on Thursday morning.
The reason for selling the relevant locations: customers are said to have not accepted the sales concept to the extent previously hoped. In addition to a full range of groceries, Globus also offers its own catering, bakery and butcher’s shop there, as in all its stores. However, it has become apparent that the department stores now up for sale “cannot be operated economically,” a company spokeswoman said.
Weeks ago, retail experts had already suggested Kaufland as a possible takeover candidate. Now Thomas Hewer, spokesman for the Globus management, confirmed the sales plans: “In Kaufland, we have found a potential successor whose concept fits perfectly with the requirements of the respective locations, which will continue to ensure local supplies and preserve jobs.”
In April 2021, the Globus retail chain announced the takeover of some stores of the insolvent Real department store chain. A Globus representative called this an “opportunity of the century” at the time. The number of its own market halls, as the Saarland-based retailer calls its locations, rose from 49 to 65.
Industry insiders say that up to 20 million euros were spent on renovations in some locations to bring the run-down Real full-range retailer’s buildings, some of which were showing their age, back into shape. Kaufland also took over several branches of the now-defunct Real company.
In June of this year, the industry newspaper “Lebensmittel Zeitung” reported on plans to get rid of as many as seven Globus stores. Kaufland is in the starting blocks as a potential buyer. At the same time, the magazine “Business Insider” confirmed that buyers were being sought for branches. The reason for this is the economic developments, which are far behind expectations since the acquisition in 2021 and 2022.
Globus, based in St. Wendel in Saarland, currently operates 65 department stores nationwide. According to its own information, the family-owned group, which was founded in 1928 as a grocery store, now employs around 20,000 people.