Department stores | “Branch closures and staff cuts are not a strategy”

The future of Galeria department stores is more uncertain than ever. Photo: Imago/Arnulf Hettrich The Galeria department store chain has filed for bankruptcy for the fourth time in six years. Did the renewed bankruptcy come as a surprise to you?

If no changes occur, why be surprised? No future strategy other than massive staff cuts is or cannot be the answer to the changing conditions and customer wishes.

Do department stores like Galeria still have a secure future given the overwhelming competition from discounters and the Internet?

Andrea Grisail is the works council chairwoman of Galeria in Mülheim an der Ruhr.

To put it briefly: yes. Salespeople make an important contribution to explaining a product to the customer through operation and advice. In the anonymous world of the Internet, it is becoming increasingly important to maintain real social contacts. Loyal regular customers show us how important this exchange is, and there are products that do not meet the customer's expectations without advice and are exchanged again. When low-cost suppliers without certifications and EU guidelines flood the German market with their products because of financial hardship or because the “stinginess is cool” mentality arises, the important work of these people in retail is overlooked. It all costs money to offer this service and so understandably these products will always be more expensive than online. Then asking us for advice and then buying cheaper online often leaves us frustrated.

Why could no long-term, viable solution be found despite several rescue and renovation attempts?

The workforce hears what the customer wants every day. It would be great for management to listen. I am convinced that service and advice cannot be achieved by reducing personnel costs.

The approximately 12,000 employees have been foregoing salaries and special payments for years. According to Verdi, it is up to 30 percent compared to the collective bargaining agreement in retail. Are the employees and Galeria now threatened with complete clear-cutting?

I won't give an answer here because everything would be speculation and I only work with facts. But I can see that simply closing branches and cutting staff is not a strategy.

If you could choose a new investor, what conditions would you consider essential?

Property obliges. If there is someone who is passionate about retail like we are, that would be great. Investments, product ranges that are based on customer wishes and a future strategy with the aim of positioning ourselves significantly better than the Internet in terms of service and advice would be a dream. My colleagues deserve an investor who supports them, values ​​them and provides them with the tools to do their jobs properly.

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