Canadians buy Kaufhof – Karstadt owner gets nothing – Reuters Germany

– by Matthias Inverardi

Cologne (Reuters) – In the German department store market, the cards are reshuffled: The Metro Group sold the subsidiary Galeria Kaufhof for 2.8 billion euros at the North American retail giant Hudson’s Bay.

The German market leader is for Canadians the basis for further expansion in Europe form. Hudson’s Bay CEO Richard Baker assured on Monday his company has no plans job cuts. Rather, he wants to invest heavily large chain with 21,500 employees in the 140 department and sports stores. Locations and employees receive a guarantee of existence for three years. Karstadt-owner René Benko was in the race for Kaufhof from empty. He regretted this: A common future of the two chains is now no longer possible

<. p> “We are pleased and proud to pass Kaufhof at Hudson’s Bay,” said Metro CEO Olaf Koch. “Hudson’s Bay has a strategy and international growth Galeria Kaufhof will play a central role.” Metro verbaschiede from the 1996 adopted daughter with a laughing and a crying eye. Hudson’s Bay chief Baker explained that the concern had already had Kaufhof since 2006 in mind. The Canadians had visited each store and become familiar with the German and European market. You want to entangle the online and Filalgeschäft better and expand its position as number one of Kaufhof in Germany.

Hudson’s Bay have great respect for the achievements of Kaufhof team, assured Baker. The head office of Kaufhof stay in Cologne. In addition, Canadians want to continue with the existing management team. In fiscal year 2013/14, sales of Kaufhof was around 3.1 billion euros. The ailing competitor Karstadt operates nationwide more than 80 classic department stores. Owner Benko had scheduled cutbacks and announced, among other things the end for department stores in Hamburg and Stuttgart. Benkos Signa Holding stated that it would now focus on Karstadt.

SALE WILL FILL METRO CHECKOUT

The many years of planned sale of Kaufhof brings the Metro not only an exceptional income of EUR 700 million in operating profit. The Düsseldorf Trade Group to reduce its net debt at the same time by 2.7 billion euros. The transaction is expected to close in the fall. Analysts welcomed the sale – this is good news for Metro shareholder, said DZ Bank. Nevertheless broke Metro shares by almost five percent. According to one dealer, the purchase price disappointed investors, many of whom had expected at least three billion euros.

Cook wants the revenue boost the online business and expanding especially with the wholesale markets. Here’s an entry into new countries in 2016 was again possible takeover targets could also be targeted. Koch made thus clear that the Metro’s shareholders can not expect a special dividend from the sale. He had Kaufhof put up for sale because he sees no adequate expansion opportunities for the department store concept under the umbrella of Metro. He wants the group to focus on the Media-Saturn-electric markets and the business of the wholesale markets. Continued …