After a thorough reorganisation, German department store chain Galeria is healthy again, says CEO Olivier Van den Bossche, who, in addition to a new commercial strategy, is also aiming for a genuine cultural change.
Four core areas
There will not be a fourth bankruptcy procedure for Galeria, says Belgian top executive Van den Bossche in an interview with De Tijd. A thorough clean-up made the company healthy again in recent months. Rental costs went down sharply and a new commercial wind is blowing: ‘We are going to focus more on four core areas: cosmetics, handbags, lingerie and shoes. For activities that are less of a focus, such as electricals, we are looking for partners. For food, we are working with Lidl, which already operates supermarkets in three of our shops. These look fancier than the classic Lidls.’
The CEO insists on the importance of service: ‘Clothing is the same everywhere, but with service we stand out from the competition. When I visit shops, I pay attention to the people first.’ Van den Bossche also wants to give his employees more freedom and responsibility, no easy feat in a German company with a very hierarchical culture. ‘I say: ‘People, think for yourselves. How can we get more turnover? How to get more profit?’ Until recently, shop directors, who manage 250 people, did not even have access to their P&L (profit and loss figures, ed.). So how can they improve them?’ Recently, shop directors have been allowed to buy products themselves from local suppliers.
