Doubts have emerged over a proposed merger between two of the top department stores that once dominated the German retail market, Galeria Kaufhof and Karstadt. Both companies have been suffering under the onslaught of on-line retail, as Germans have come to realize what their options are when it comes to middle market fashion and accessories. Kaufhof, owned by HBC, has been making consistent losses, while Galeria Kaufhof turned its first profit in years (just over €1m) in 2017. But sources now say that LBBW, which is financing Kaufhof’s owner Hudson’s Bay Company, could be getting cold feet over the deal, allegedly over concerns over Kaufhof’s limited profitability.
