Galeria Karstadt Kaufhof closing 62 stores and seeking a plan for the future
Aftermaths of the Covid19 economic crisis are already visible in several part of the world, with insolvent creditors, orders cancelled and employers’ drastic measures – such as shutting down business and leaving hundreds of people without job. Germany is no exception: according to a report by Fashion Network the German department store Galeria Karstadt Kaufhof is closing 62 out of 172 stores all over the country, hoping in this way to be able to save rest of them and survive to the imminent crisis. Together with 62 stores, 5000 employees are lost as well, and the number could rise even more. Spokesmen inside the Galeria said to the press that, without a concrete economic help by the government, the measure won’t be enough and new cuts would be needed.
The crisis, and consequent closure of another department store makes the situation worst and enlighten the epochal change we are going to face in the upcoming future. Online shopping was already a favorite before the pandemic and during the lockdown it experimented a surge. Fast shipping and free returns make e-commerce the perfect experience, because it is comfortable, easy and without troubles. According to a survey made in Germany in the last month, 2 persons out of 3 declared they do not go shopping anymore (apart for the essential) because of the hygienic measures (like mask and social distancing) imposed to the shops, which make everything problematic and annoying, while enforcing the appeal of e-shops.
It is a reality every day clearer to everybody and the fashion industry’s leaders must act soon in order to face the unavoidable change.
