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Sayfa başlığıGaleria Kaufhof

Image: Galeria Kaufhof is the innovation leader among the department stores

Content overview

Weiter auf dieser Seite:In figures
Weiter auf dieser Seite:The company
Weiter auf dieser Seite:The concept

Galeria Kaufhof GmbH is the management company of the department stores operated by METRO Group. These department stores are mostly located in city centres – above all in prime inner-city locations.

With its life-style and event-orientated Galeria concept, the company is an innovation leader among German department stores who successfully combines tradition and innovation. Galeria Kaufhof is a synonym for a comprehensive range of premium products, international brands, a matching product presentation and employees who are eager to serve their customers. These are the key success factors of this company whose history began 1879 in Stralsund.

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In figures

Galeria Kaufhof
Locations 2 141
Number of countries 2 2
Sales 1 3.5 bn €
Total selling space 1 1.5 mio sqm
Headcount (at closing date, full-time equivalents) 1 19,875

1 Status 31 December 2008
2 Status 31 December 2009


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The company

Image: Mr. Leonhard TietzIn 1879, the young merchant Leonhard Tietz opened a small textile shop in Stralsund, thereby laying the foundation for Kaufhof. On a selling space of 25 square meters, he sold yarns, buttons, cloth and woollens. His business philosophy was based on a simple idea: quality at fixed prices and only against cash. In 1897, he relocated the head office of his company to Cologne. Starting from there, a store chain was created. In 1905, Tietz was the first German department store owner to convert his firm into a stock corporation. After his death in 1914, his eldest son, Alfred Leonhard Tietz, took over.

From a regional department store to a Germany-wide department store operator

In the national socialist era, the Jewish owner family was expropriated and Leonhard Tietz AG converted to "Westdeutsche Kaufhof Aktiengesellschaft". The Tietz family emigrated and was indemnified later. In World War II, 35 of the then existing 40 department stores were destroyed. After the German currency reform and reconstruction phase, the company expanded. With the extension of the store network, the company was transformed from a regional department store chain into a Germany-wide department store operator. In 1953, "Westdeutsche Kaufhof AG" became "Kaufhof Aktiengesellschaft". In 1989, "Kaufhof Holding AG" was founded as the controlling company; the operating department store business was spun off into "Kaufhof Warenhaus AG". In 1996, Kaufhof Holding AG was merged to METRO AG and Galeria Kaufhof became a sales brand within the Group.

Continuous concept optimization

In 1994, Kaufhof acquired a major shareholding in Horten AG. Horten’s Galeria concept was revamped and modified and, from 1995, implemented in the department stores as the Galeria Kaufhof concept and further developed. In that same year, the operating business of Horten was merged with Galeria Kaufhof. The Galeria stores very soon became the key drivers of the company’s business development. Since the late 1990s, Kaufhof has also been running the target-group-specific sales format "Sportarena", which offers customers a new, athletic shopping experience.

The shopping experience in Belgium

In April 2001, Kaufhof took over Inno S.A. – the sole department store operator in Belgium. It was founded more than 100 years ago and offers fashion and lifestyle at 15 locations in 12 cities. By 2004, all Inno stores had been successfully converted to "Galeria Inno". Galeria Inno focuses on the assortment categories of ladies’ wear and menswear, children’s wear, linen goods, accessories and jewellery as well as household goods.

For the past four years, the company has been working on its market share, sales and earnings performance. Its successful market position is based on a continuous assortment optimisation. Galeria Inno has positioned itself as a "House of Brands" with fashionable, ultra-modern national and international labels.

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The business concept

Galeria Kaufhof is a modern lifestyle provider under the slogan "Ich freu’ mich drauf" (I can’t wait). The top-quality, internationally orientated assortments are presented in lavishly furnished, clearly structured product worlds with numerous brand shops. The focus is on trendy fashion and lifestyle products combining different kinds of complementary assortments. The inspiring product presentation is staged effectively and highlighted by special events. The overall appearance of Galeria Kaufhof imparts an impression of quality and exceptional, out-of-the-ordinary ideas.

Living Galeria concept

Brands, quality, attractiveness and innovation as well as a unique ambience and excellent service are the elements that materially contribute to the successful positioning of Galeria Kaufhof. The Galeria concept – possible in stores with at least 7,000 square metres of selling space – is a living concept. Geared towards the customer’s needs and desires, it is continuously advanced. Galeria Kaufhof is a multiple specialist and has established itself as a strong and unmistakable brand in inner-city retailing. The strategic repositioning is also reflected in the new Galeria generation that was introduced for the first time in Aachen in 2005 and has since been successively implemented in the company’s department stores. Following an extensive conversion, we opened a new flagship store on Berlin’s Alexanderplatz and the Galeria outlet in Hamburg’s Alstertal shopping mall in 2006. In 2007, the department store in Bonn and that on Ernst-August-Platz in Hanover added the new concept. A new Galeria Kaufhof department store was opened at the Ring Center in Berlin. In 2008, the Frankfurt Hauptwache, Hamburg Mönckebergstraße and Kassel stores now use the new concept. Modern market research and controlling tools contribute to the ongoing optimisation of the Galeria concept. As a result, Kaufhof can identify changes in customer expectations and consumer behaviour early on.

Technical innovations boost performance

GALERIA Kaufhof GmbH has repeatedly received awards for its pioneering role in multimedia applications. Its outlets offer a broad range of multimedia information and customer advice systems. These so-called service desks offer entertainment, information and service and complement the personal assistance service. They are easily operated by touch screens, offer product search support and assist customers in their purchase decisions by providing qualified information and advice.

By applying modern technologies, Galeria Kaufhof creates the necessary conditions for improved customer service and is able to optimise workflows along the supply chain, in particular logistics processes. To this effect, Kaufhof always relies on the latest technologies and promotes, among other things, the use of electronic delivery notes. As early as November 2004, Kaufhof started implementing the radio frequency identification technology – or RFID – in its logistics and warehouse management. From September 2007 through the end of 2008, the company tested the use of RFID at the item level in the menswear department of the Galeria Kaufhof department store in Essen.

PAYBACK – an effective tool for fostering customer loyalty

Kaufhof is forging ahead with the transformation of the successful PAYBACK programme from a bonus system into a comprehensive, integrated customer loyalty programme. The outstanding success of the PAYBACK system is illustrated by the fact that around 9 million customers have a Galeria Kaufhof PAYBACK card, which was introduced in 2000. Besides interesting coupon campaigns and attractive bonuses, cardholders benefit from exclusive benefits, such as topical information about worthwhile sales offers, innovative products and trends from the various product worlds as well as invitations to store events. Top customers receive an exclusive customer magazine. In 2006 and 2007, the German Direct Marketing Association DDV presented Kaufhof with the German Dialogue Marketing Award in silver for the special creativity of its mailing campaigns. Also in 2007, Galeria Kaufhof was the first German retail company to receive the coveted industry-wide EDDI award for its outstanding dialogue marketing strategy.

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Kaufhof Website

Link to external page:www.galeria-kaufhof.de

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