The crisis of department stores
They were once magnets in the city centers: the big department stores. But after Hertie and Woolworth had to file for bankruptcy g5266 battery and conglomerate Arcandor leaked that he wants to get rid of some of Karstadt department stores, is clear: the temple of consumption are deep in crisis.
Arcandor CEO Karl-Gerhard Eick announced earlier this week that he wanted to focus in the coming years on the core business of the Group. In this he includes in particular the lucrative tourism division Thomas Cook as well as 81 Karstadt department stores. The remaining eight are department stores, including the houses in Ludwigsburg, Kiel and Leipzig are in a new company spun off and later sold or closed. The reason: You write the red and are considered a renovation. 3r305 battery
Whether it remains in the separation of these eight branches is unlikely. For many years already, the retail division of the department stores is in a consolidation phase, which will now be accelerated by the economic crisis, as the bankruptcies of Hertie and Woolworth.
In times of economic crisis were the department stores is not the first targets, the customers would be controlling for their purchases, says Mirko Warschun, an analyst with AT Kearney. Winners crisis, however, are especially discounters such as Aldi, Lidl and Kik. "This proposed so far much better than the competition and in some cases even accelerated their growth. Even drugstores such as DM and Rossmann were not bad. "
How many of the approximately 650 stores 126 Kaufhof department stores (Metro Group), 129 Karstadt department stores (Arcandor), 315 Woolworth stores, 73 and 9 Hertie Ludwig Beck.in Germany after the economic crisis still remain is unclear. The Saarbrücken trade expert Joachim Zentes is, for example, estimates that about one-third of the stores in the next few years will still close. 6y270 battery
The decline of department stores, however, began much earlier, around the mid-1990s. Since then, sales have stagnated or are developing, according to the Association of individual (HDE), even declining. Also the share of the previously ever-growing total turnover of the total turnover of retail trade EinzelhandelsDer is, according to the HDE at € 399.6 billion for 2008. decreases greatly. In the 1970s, the stores are to a report in the Frankfurter Allgemeine newspaper said another 14 percent of the total turnover of retail trade have posted. Today there are only 3.3 percent, according to HDE.
The managers and insolvency practitioners who wish to manage their houses from the present crisis, or in the case of Woolworth and Hertie try to bring the chains move to a new owner, the misery of the past years often too high rent of the property owners. c1295 battery
Analysts see the reasons but mainly as outdated concept and the changing buying habits of consumers. Argues the economist Joachim Zentes that would have the department store chain 20 years ago must reorient. They should have focused on a few areas, and otherwise let their land to other providers. From department store companies would then be next to commercial enterprises also become property managers with shopping centers.
And just this shopping center are now also reap the department stores much of the clientele in the immediate neighborhood. They offer a wide range of products in small independent stores of major brands. Moreover, shopping centers attract a variety of service providers such as hairdressers and makeup artists and snack offerings.
An additional competition are specialized chain stores such as Saturn and Media market for electronic articles or H & M, Zara and Esprit for fashion. This large-scale retailers have run under a wider range in its segment and one often better trained personnel to the engineering departments of department stores and fashion rank.
Especially for the younger audience also comes to the Internet as competition. Already, the revenue from online shops are located, with a turnover of 12 billion euros par with the revenue of the department stores. But while, according to an analysis of A.T. Kearney is the total revenue on the Internet to double by 2012, sales growth at department stores under the circumstances now seems unlikely. lenovo x40 battery
As the situation is like in other European countries, there is no clear opinion about it. In France the market is consolidating further advanced than in Germany, for example, says Kearney-expert Mirko Warschun. There, sales of department stores lay his estimation, a total of only 1.4 percent. Huge supermarkets such as Carrefour Hyper Marche, or are there the main competitors for department store chains. Only the big luxury houses of Galeries Lafayette and Printemps in cities such as Paris is going relatively well, which is due in large part to its popularity among tourists.
The retail federation estimates, however, that the situation in other European countries like Spain and France for the stores is better than in Germany. "Abroad, who managed the department stores to thrive in the high price segment. there is also competition from the discounters "not so strong, said Robert Weitz, Chief Economist of the HDE.
HDE When you see the future of department stores positive if the right decisions are made. The firms would continue to try, instead of establishing itself in high-price segments and refocus their products at specific target groups of an average family. Now the chosen of Arcandor CEO Eick way he thought so wrong, says Robert Weitz.
Also Mirko Warschun provides for the purchase of houses in the future a chance, "This one-stop shopping does have its right to exist", so Warschun. The key to the success of these houses lie in a focused assortment, accepted private label products and an attractive marketing. lenovo x41 battery
In the years to go some industry analysts estimate that so far spared from the insolvency department store chain Karstadt and Kaufhof in future be managed from a single source. "It will" give no place in the long term for both says, including Joachim Zentes.
In a new joint company could, however, not all of the currently about 260 stores will be transferred if it is to operate profitably. After a Commerzbank study, only 100 are permanent locations for a traditional department store. For the other would have a new use be found.
