During Corona, the trend towards online shopping increased. Has the classic department store become obsolete? The big department store chains in particular are feeling the effects of this. The consequence: One branch after the other is closed. C&A is closing three branches in Germany, and Galeria Karstadt Kaufhof has between 131 and 90 branches on the brink.
C&A closes branches
The fashion house chain C&A has been restructuring for a long time. A company spokeswoman confirmed to 24rhein.de: “The reports about the closures in Kiel, Rendsburg and Elmshorn are correct.” C&A closed 13 branches in 2022. Soon these branches will also no longer exist:
- C&A in Elmshorn: Alter Markt 6 in 25335 Elmshorn
- C&A in Rendsburg: Schiffbrückenplatz 1 in 24768 Rendsburg
- C&A in Kiel: Holstenstrasse 1 bis 11 in 24103 Kiel
According to the “ manager magazine“ For years, C&A has suffered from increasing competition from discounters such as Primark and Aldi. But Primark also recorded losses.
Galeria Kaufhof Karstadt is also closing branches
There are always new reports about large department store chains that are closing branches in German inner cities.
In November 2022 gave Karstadt and Kaufhof known, more than 40 branches to want to close. The reason for this: The company Galeria Karstadt Kaufhof is insolvent and wants to handle the restructuring itself using the so-called protective shield procedure.
Hundreds of jobs are at risk as a result. In some regions, more than 1,000 jobs are threatened. At that time, Jaana Hampel from Verdi said on the subject: “The colleagues are angry. On average, they waived 5500 euros per year – and now this! Again, employees should pay for management mistakes!”
In December 2022, the “ food newspaper“ after and reported from 90 branches of Karstadt Kaufhof to close At least according to an internal e-mail from the General Works Council.
The bubble of hope from “buero.de” has burst again. 47 branches should be saved. But the offer had failed before the start of concrete negotiations. “Buero.de is refraining from taking over 47 branches of the insolvent Galeria Karstadt Kaufhof GmbH,” the company announced on Thursday, December 22, 2022.
In recent years, 680 million euros from the Economic Stabilization Fund (WSF) have flowed to the company to save jobs.
Primark: These branches are closing
Also the cheap fashion house Primark has announced closures in Germany for 2023. The branch in the Loop5 outlet center in Weiterstadt is already closed. The Primark location in Berlin in the Schloss-Straßen-Center (Walther-Schreiber-Platz 1) is to follow on April 30, 2023.
Primark’s sales have been declining in recent years. While they were still at 926 million euros in 2019, Primark’s sales in 2021 amounted to only 380 million euros. Further branch closures are therefore possible here.