Future after the Galeria chapter: The spontaneous plan of Ikea and Co. | EUROtoday

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DGermany’s furnishings retailers are fascinated about areas of the bancrupt division retailer chain Galeria Karstadt Kaufhof. “Such inner-city locations have opportunities,” says Markus Meyer, President of the Furniture and Kitchen Trade Association (BVDM).

Among different issues, ideas wherein a number of specialist retailers cooperate and use the area collectively are conceivable, for instance suppliers of kitchens, upholstered, front room and bed room furnishings, but additionally parquet and fireplaces. In addition, the well-known massive furnishings retailer chains may transfer into vacant properties on the buying streets.

This just isn’t but widespread apply in Germany. Furniture shops are often situated on the outskirts or outdoors the gates of a metropolis on a inexperienced area. “The calculations in the furniture trade usually do not provide first-class locations,” explains Meyer, referring to the big areas which might be needed for the presentation of sofas, beds, chairs, tables, cabinets, and so on. and subsequently price so much, be it for Rent or ongoing working bills. And the margins for furnishings are considerably decrease than for vogue, textiles and sneakers and even jewellery, explains the trade consultant.

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Galeria Karstadt Kaufhof has already gone through two insolvency proceedings during the Signa era
Insolvency of Signa subsidiary

However, in keeping with Meyer, a possibility could now current itself. Previous rounds of closures at Karstadt Kaufhof have proven that fast reuse just isn’t a given. “If dozens of branches come onto the market at the same time, that could benefit us,” says Meyer.

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In reality, in lots of locations that is growing stress on landlords and metropolis planners to maintain their usually already struggling facilities engaging. And with the bancrupt Galeria mother or father firm Signa, there’s a landlord who wants fast options – and presumably for lots of buildings.

Meanwhile, the furnishings commerce can be below stress. Because 2023 was a really weak yr for furnishings, because the BVDM says. Sales remained largely fixed – however solely as a consequence of important value will increase in some circumstances.

Customers keep away from furnishings retailers

The Institute for Retail Research (IfH) studies markups of a median of 18 % for the trade. And that has a noticeable influence on the order quantity and thus on gross sales within the coming months. Orders from customers on this nation fell by a excessive single-digit proportion, particularly within the second half of the yr, studies the BVDM.

There are additionally considerably fewer guests to the furnishings shops. According to the affiliation, frequencies fell by as much as 20 % final yr. “Consumers lack trust and are very reluctant to buy,” says BVDM boss Meyer within the run-up to the world’s largest furnishings commerce truthful, IMM Cologne, which opens in Cologne on January 14th.

Demand has fallen noticeably, particularly for the reason that debate in regards to the heating legislation. “People are afraid that their heating will break and they will then have to invest tens of thousands of euros in new technologies and converting their house. So they keep their money together.”

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The German furniture industry is suffering more and more from the ongoing purchasing reluctance

The trade hopes that new metropolis heart areas may improve frequencies considerably, even in the long run. Ikea, for instance, has expertise with this. The Swedish group operates a metropolis heart department within the Altona district of Hamburg – and may be very happy, as Germany boss Walter Kadnar emphasised in an interview with WELT.

However, Ikea has realized through the years that the necessities of consumers there are totally different. “Only recently are we looking at whether and how we need to change the product range or the layout and design in the store,” says Kadnar. In addition, what’s going to occur to the parking storage of town heart department is at present being mentioned. “We practically don’t need that at all.” Therefore, we at the moment are contemplating whether or not various utilization ideas make sense.

Ikea just isn’t ruling out additional metropolis heart branches

The data gained over the previous few years is now being included into Ikea Germany’s additional location planning. Kadnar doesn’t rule out additional metropolis heart branches, together with in Galeria Karstadt Kaufhof areas that will turn out to be empty.

Ikea is at all times fascinated about alternatives that come up, emphasizes Kadnar. “We are always curious,” he stays obscure. A sticking level may very well be that the group often owns the properties wherein the branches are situated and isn’t a tenant.

Kadnar doesn’t really feel any stress to behave given the present community with at present 54 blue and yellow furnishings shops throughout the nation and good figures previously monetary yr. “54 is a good number at the moment,” says the supervisor, who has been in workplace since October 2022. Nevertheless, so much continues to be doable on this nation.

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“Germany remains a growth market for us.” After all, Ikea’s market share is just 9.1 %. In order to additional improve this, the Swedes aren’t simply counting on traditional furnishings palaces. There are additionally so-called planning studios in Berlin and Munich.

In these outlets in district facilities measuring just a few hundred sq. meters, Ikea reveals a specific vary of furnishings, primarily from the kitchen, bed room and front room areas. Customers can get recommendation on website after which have the chosen furnishings delivered to their house or decide it up from a furnishings retailer. “This format has proven to be successful,” says Kadnar. “It’s quite possible that we’ll now bring it to other cities too.”

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“Dramatic economic crisis”

At the identical time, Ikea is counting on on-line retail. Almost 1 / 4 of Germany’s gross sales at the moment are made by way of the Internet, studies nation boss Kadnar. Customers are provided both from the branches or from particular logistics facilities, for instance in Dortmund or Salzgitter.

Ikea studies that round 25,000 packages depart the corresponding location in Dortmund alone each working day. These shipments can both be despatched to the shopper, to a department for assortment or, extra just lately, to our personal assortment stations. In Munich, Ikea is at present testing this idea with 4 areas throughout town.

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