Galeria’s revenue in free fall

Things are once again not going well for the German department store chain Galeria: in the first half of its current fiscal year alone, the retailer is said to have lost more than 100 million in revenue. According to insiders, Easter sales were “a disaster.”

Financial difficulties

From October 1 to March 31, revenue at Galeria’s physical stores was approximately 110 million euros lower than last year, according to insiders, reports the German trade magazine Textilwirtschaft. Gross profit is said to be more than 60 million euros lower than a year earlier. According to an insider, the recent Easter sales were “a complete disaster,” the magazine reports. Like other retailers, the department store chain is experiencing increasing customer reluctance as a result of the war in Iran.

Last week, it was reported that Galeria had asked several property owners for a deferral of rent payments. It strongly appears that the retailer is once again facing major financial difficulties following three bankruptcies over the past six years. The department store chain still has 83 stores and approximately 12,000 employees in Germany. Last fiscal year, revenue amounted to approximately 2 billion euros.

According to internal sources, Galeria plans to hold a major clearance sale starting in May to raise cash. The company declined to comment on the report by Textilwirtschaft.