In the face of rising competition from e-commerce, two German department store chains — Kaufhof and Karstadt — will merge in a billion-dollar deal, anonymous sources close to the matter have revealed.
Image:Karstadt
Karstadt owner Signa Holding will purchase Kaufhof from its owner Hudson’s Bay for €1 billion ($1.16 billion). Signa will acquire a 51% share of the newly merged business, reports suggest.
An estimated 5,000 jobs will be lost in the merger, in areas such as logistics and sourcing, as well as at both parties’ headquarters. Remaining employees will face pay cuts. Combined, the two groups currently operate 176 stores across Germany.
