Hudson’s Bay Co. announced on Monday an agreement to buy German department store Galeria Kaufhof, expanding HBC’s international presence. Here’s a look at what Canada’s oldest company is acquiring.
History
Galeria Kaufhof was founded in 1879 as a textile shop in Stralsund, Germany. In 1905, the owner converted the company into a stock corporation — a first for German department stores. During World War II, 35 of the existing 40 Kaufhof stores were destroyed.
Stores
Galeria Kaufhof, or simply Kaufhof, is the biggest department store chain in Germany and the fourth-largest in Europe. Kaufhof has 137 locations —122 in Germany and 15 in Belgium.
Products
The department store chain sells designer and house brand products of everything from clothing, to sporting goods, to furniture, to wine and spirits. The stores carry a number of uniquely German items, including Sigikid toys, Borlind skin care products, Cronert socks and Marburger watch straps. Prices range from budget (a Casio watch is available for 14 euros) to high-end (1,900 euros for a bottle of Hennessey).
Notoriety
Eighty-nine per cent of all German citizens say they’re familiar with Kaufhof and the company now has a sales presence in 31 countries. Last summer, Kaufhof launched a Chinese website to take advantage of China’s growing interest in German culture and Germany, which welcomed 1.7 million Chinese tourists in 2013.
Marketing
Kaufhof gathers and analyzes consumer information from 8 million loyalty customers. Shoppers collect a point for every euro they spend to redeem later, and in exchange they share their purchasing habits with Kaufhof, which then tailors its marketing to each customer.
Company culture
The company was named one of Germany’s 125 top employers of 2014 based on its corporate culture, work-life balance, training and development and career opportunities. The business has about 21,500 employees, all of whom HBC plans to retain.