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With the integration of the former Horten<br />
branches into joint department store operations,<br />
the ongoing conversion to the Galeria<br />
Kaufhof concept has been in progress since<br />
the start of 1995. Stores with selling space of<br />
more than 7,000 m² and a sales potential of<br />
around DM 1.5 billion in the respective catchment<br />
area are the most suitable conversion<br />
candidates. As of the end of March 1997, 40<br />
department stores had been converted to this<br />
new outlet type. By the end of 1997 half of the<br />
suitable branches or 65–70 percent of selling<br />
space will have been refurbished. On a samespace<br />
basis, the stores restructured to Galerias<br />
have improved sales on average.<br />
34<br />
Structure of the Department Stores division<br />
<strong>METRO</strong> <strong>AG</strong>’s Department Stores division consists<br />
of the Kaufhof Warenhaus <strong>Group</strong> and<br />
Kaufhalle <strong>AG</strong>. The division recorded sales of<br />
DM 11.54 billion (down by 1.7 percent) in<br />
fiscal 1996 (like-for-like selling space, down 0.9<br />
percent). Total selling space rose by 0.9 percent<br />
to 1,690,467 m², while the number of stores<br />
fell to 306.<br />
The Kaufhof Warenhaus <strong>Group</strong> with its 145<br />
branches and 1,326,163 m² selling space registered<br />
sales of DM 9.31 billion (down 0.8 percent).<br />
In terms of comparable selling space,<br />
this represents a slight dip in sales of 0.3 percent.<br />
The western German Kaufhof branches,<br />
aided by the successful Galeria Kaufhof concept,<br />
improved their same-space performance compared<br />
with the preceding year.<br />
The Horten branches in Frankfurt/Oder, Halle,<br />
Jena, Weimar, Stralsund, and Potsdam were<br />
closed, whereas a Galeria Kaufhof branch with<br />
17,650 m² selling space was opened at Centro<br />
Oberhausen. Here sales were well above<br />
expectations.<br />
Kaufhalle <strong>AG</strong> with its 161 branches achieved<br />
sales of DM 2.23 billion (down by 3.2 percent).<br />
In western German branches of Kaufhalle <strong>AG</strong>,<br />
retail sales fell by 1.6 percent and in eastern<br />
Germany by 13.6 percent compared with 1995.<br />
The generally weak state of the retail trade in<br />
eastern Germany and the domination of “outof-town”<br />
shopping complexes led to an appreciable<br />
decline in sales at Kaufcenter branches<br />
in downtown locations.