Function with Ikea? Galeria Karstadt Kaufhof is looking for a revolutionary approach

Function with Ikea? Galeria Karstadt Kaufhof is looking for a revolutionary approach

The concept of department stores in Germany face major challenges. This becomes particularly clear by the bankruptcy proceedings of the department stores of Galeria Karstadt Kaufhof. Possible rescue strategies are discussed, but so far there is a lack of really innovative approaches.

A charming idea, which has not yet been confirmed, is to locate the furniture giant Ikea in parts of the department store areas. Such a cooperation would make the department stores more attractive again and help the rents that occur in the most expensive houses. At the same time, the department stores would get the chance to revise their own concept and to offer a range that is better tailored to customer needs.

However, Ikea also faces the challenge of luring customers into the branches. Sales in the furnishing houses are declining, while online trading is taking an increasing proportion of overall business. A cooperation with Galeria Karstadt Kaufhof could therefore be an advantage for Ikea to attract customers who are already in the department stores.

It is interesting to note that department stores like Galeria Karstadt Kaufhof historically played an important role in building city centers in Germany. They were often anchor points for the development of shopping streets and lived in the city centers. In view of the current situation, however, it is necessary to modernize the concept and to adapt to the needs of customers.

The most important information is summarized in the following table:

| Topic | Information |
| ——————- | ——————————————- |
| Insolvency | Galeria Karstadt Kaufhof is located in the third bankruptcy proceedings |
| Cooperation idea | Possible cooperation with Ikea on department store areas |
| Advantages | - Support of rent payments \ n- Possibility to revise the concept |
| Challenges | - Detail of sales in the department stores \ n- online competition |
| Historical context | Wall houses played an important role in building city centers |

It remains to be seen whether the idea of ​​a cooperation between Galeria Karstadt Kaufhof and Ikea has proven itself and opened a new way for the department store concept in Germany. In any case, it can be seen that modernization and adaptation is urgently required to meet the current challenges in retail.

Source: Berliner Morgenpost/OTS