Hudson’s Bay Company (HBC) has acquired leading European department store company, Galeria Kaufhof Group.
On annoucing the acquisition, HBC shared an overview of plans to build on the company’s role in the German and Belgian retail spaces. The plans also include working to invest in its banners, Galeria Kaufhof, Galeria INNO, DINEA and Sportarena to significantly enhance the customer experience across multiple channels and drive growth.
“Our teams are off to a strong start working together in developing plans that build from Galeria Kaufhof Group’s distinctive appeal in the German market while bringing to bear the strategies that have enabled us to drive substantial growth at our department store banners in North America, including Saks Fifth Avenue, Saks Off 5th, Lord & Taylor and Hudson’s Bay,” HBC CEO Jerry Storch said. “We strongly believe in the great future ahead for Galeria Kaufhof Group and look forward to seeing our plans come alive across all channels.”
Galeria Kaufhof said it will introduce new strategies during the first half of 2016 and through 2017 in Germany and Belgium, including:
- Taking advantage of HBC’s global footprint and deep brand relationship to help the company attract a wider range of brands.
- Significantly enhancing its beauty, shoes and handbag collections.
- Expanding its digital capabilities and offerings to develop Germany’s best consumer-facing network and broadening its selection for customers by increasing store selling space.
Additional plans will be announced over time.
HBC will honor all commitments it has made under Galeria Kaufhof Group’s Social Charter and anticipates an expansion of the associate base over time as these new strategies create demand for additional personnel in stores and in connection with digital strategies. The company’s headquarter will remain in Cologne, Germany.
“Even as we look to the future, we are focused on delivering an enjoyable, exciting and convenient Christmas shopping experience for our customers, including greater investment in marketing to highlight our offering and service in our stores and online fulfillment,” Galeria Kaufhof CEO Olivier Van den Bossche said. “And we look forward with great anticipation to bringing our new plans to life for our customers starting in the new year.”
HBC’s portfolio now includes over 464 stores in four countries with eight banners and expected sales to reach around C$14.5-C$15.5 billion in the 2016 fiscal year. The company said it also plans to introduce Saks Fifth Avenue and Saks Off 5th to the German market in the future.