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Galeria department store in Wismar under review; mayor optimistic
🇩🇪 Germany /Economy & Trade

Galeria department store in Wismar under review; mayor optimistic

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News From a news agency Context piece
  • The German department store chain Galeria is reviewing 33 of its locations for profitability, with the Wismar store potentially facing closure.
  • Galeria plans to negotiate lease terms and space adjustments with landlords, stating that the continuation of affected stores is at risk if no viable solutions are found.
  • Wismar's mayor expressed optimism about the store's future, citing its historical significance and profitability, and urged the state government to secure Sunday opening hours for tourism.

The German department store chain Galeria is scrutinizing 33 of its locations to assess their profitability, a move that could lead to store closures, including the Wismar branch. The company intends to engage in negotiations with landlords regarding lease conditions and spatial modifications. Galeria has indicated that the viability of these stores hinges on reaching sustainable agreements.

The location has always been profitable and will remain so in the future, I am sure of that.

— Frank JungeWismar's mayor expressing optimism about the Galeria store's future.

Wismar's mayor, Frank Junge, conveyed a confident outlook regarding the local Galeria store. He emphasized its consistent profitability and historical importance as the original Karstadt department store. Junge also appealed to the state government to expedite a legally sound regulation for Sunday opening hours, arguing it is crucial for capturing weekend sales, especially in tourist destinations like Wismar.

It has an overarching significance.

— Frank JungeWismar's mayor referring to the historical importance of the Galeria store.

The issue of Sunday trading in Mecklenburg-Vorpommern's tourist areas has faced legal challenges. The regional trade union Verdi successfully contested Sunday openings before the Higher Administrative Court, which initially denied an appeal. The state government has since lodged a complaint seeking a review by the Federal Administrative Court.

So that turnover can also be captured, especially when many guests are there. This is important not only for Galeria but for retail as a whole.

— Frank JungeWismar's mayor advocating for Sunday opening hours.

Galeria cited factors such as rental costs and revenue generation as key criteria in its location review. The company stated that each site will be evaluated individually and with an open mind. While discussions have begun at some locations, others will commence shortly. Galeria aims for all its department stores to operate profitably in the long term, and negotiations with landlords will extend to the remaining 50 locations, exploring potential property relocations and new openings.

We will look at each location individually and with an open mind.

— Tilo HellenbockGaleria's CEO on the review process for store locations.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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