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Galeria Banks on Discount Retailer Lidl in Berlin: New Approach to Saving Department Stores

Galeria cooperates with Lidl in Berlin to secure the future of its department stores.

Eulerpool News Sep 13, 2024, 3:19 PM

In a surprising realignment move, the department store chain Galeria in Berlin is partnering with the discount store Lidl. According to information from the German Press Agency, Lidl will soon be established in two Galeria locations in Berlin – in Charlottenburg and Neukölln. Customers will have access to both store areas through the Galeria entrance and a separate Lidl entrance.

Lidl plans to offer its complete range of over 4,000 items in these branches. It is the first time that the discount retailer will be represented in a location of the traditional department store chain. According to information from Lebensmittel Zeitung, in addition to Lidl, a collection point for the furniture giant Ikea is also to be established in the branch at Hermannplatz.

This collaboration marks a new strategic approach for Galeria, which has been struggling with declining sales and high operating costs for years. The extensive store spaces, spanning multiple floors, could no longer be operated profitably with the previous department store offerings alone. The former owner, the now-insolvent Signa, had already attempted to involve third-party providers.

Galeria, which has been operating under the new name Galeria S.à r.l. & Co. KG since August 1, is now managed by the US investment company NRDC and an investment firm owned by entrepreneur Bernd Beetz. The closure of additional branches in Berlin has reduced the chain's presence in the capital to six locations, including branches at Alexanderplatz, Steglitz, and Spandau.

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