Peeking out among the many shops at Hermannplatz is Galeria Karstadt Kaufhof. This department store has a long history. It even predates this building. Let’s delve into the story of Galeria Karstadt Kaufhof.
Galeria Karstadt Kaufhof started with Leonhard Tietz. He was born in Berlin in 1849. In 1879, Tietz opened his first department store in Stralsund. It was named “Leonhard Tietz.” His business grew quickly. More stores opened in other German cities. By 1930, there were 43 stores. They had 15,000 employees.
Leonhard Tietz died in 1914. His family had to leave Germany because of the Nazis. Their company became the Westdeutsche Kaufhof AG. After the war, the Tietz family received compensation.
In 2018, Galeria Kaufhof and Karstadt joined together. This happened under the Signa Holding of René Benko. In 2019, the name changed to Galeria Karstadt Kaufhof. It became a large department store company in Germany. There were around 130 stores and 52,000 employees.
The roots of Karstadt, now Galeria Karstadt Kaufhof, go back to Wismar in 1881. Rudolph Karstadt founded his first store. It was named Tuch-, Manufactur- und Confectionsgeschäft Karstadt. Karstadt sold textiles and clothing. He used fixed prices which was new at the time. His business expanded quickly. Stores opened in northern German cities. Thomas Mann and his brother Heinrich were early customers in Lübeck.
In 1920, Karstadt took over the Althoff company. The combined company became a stock corporation. In 1930, Karstadt was Europe’s largest department store chain. It had 89 stores, 27 factories, and over 29,000 employees.
Rudolph Karstadt stepped down in 1932. The company had financial problems. The Nazis put pressure on Karstadt. The company fired Jewish employees. After World War II, Karstadt rebuilt. It took over former Centrum and Magnet department stores in East Germany. In 1994, Karstadt acquired Hertie stores.
Karstadt merged with Quelle in 1999. The company struggled financially. In 2005, Karstadt sold smaller stores. In 2009, Arcandor, Karstadt’s parent company, filed for bankruptcy. Nicolas Berggruen bought Karstadt in 2010. In 2014, Signa Holding took over Karstadt.
Karstadt had its headquarters in various cities. It started in Wismar. It moved to Kiel, Hamburg, Berlin, and finally Essen. Karstadt’s main competitor was Galeria Kaufhof.
In March 2019, Kaufhof and Karstadt started using the joint name Galeria Karstadt Kaufhof. HBC sold its share to Signa Holding. Signa became the sole owner. Legally, the Galeria Kaufhof GmbH was acquired by Karstadt in January 2020. The company became Galeria Karstadt Kaufhof GmbH.
Galeria Karstadt Kaufhof faced financial difficulties. In July 2020, it filed for insolvency. It closed many stores. The state provided financial aid between 2021 and 2023.
Today, Galeria Karstadt Kaufhof continues to adapt. It has modernized its online shop. It tries to meet changing customer needs. The company faces challenges but hopes to remain competitive.
So, as you explore Galeria Karstadt Kaufhof, remember its long past. From Leonhard Tietz’s first store to today’s challenges. It shows the story of retail in Germany. It is a story of change, resilience, and the enduring appeal of department stores.