Hudson’s Bay has plans to invest 1 billion euro in department store chain Galeria Kaufhof in the next five to seven years, according to CEO Jerry Storch’s statements in German business paper Handelsblatt.
Modernization
The first phase will mainly involve Galeria Kaufhof’s German activities, as its Canadian owner feels that market still offers plenty of growth potential. The 100 German stores will need to be revamped, a process that will start in the next few weeks. At first, ten department stores will be modernized and a sign of its willingness to invest, its Düsseldorf location alone will cost thirty million euro.
The department store chain will also add new brands to its product range, in order to attract new customers. Brands that are popular with a younger target audience will receive the most attention. On top of that, Hudson’s Bay also wants to open about forty Saks Fifth Off outlet stores in Germany.
The Canadian company also wants to continue its international expansion, with the Benelux as an option: it already owns the Inno department store chain in Belgium. Moreover, the company is also looking at the online market, because Storch feels department stores have not invested enough in this market so far.
