In brochures Karstadt and Kaufhof are already promoting – and with a new logo. In the department stores, however, is almost everything as always. Can the merger succeed? Experts are skeptical.
A few displays with the new logo, a poster, a shop window decorated with the new lettering: Those who stroll through the Karstadt department store in Cologne’s Breite Straße will not even get much of the merger between Karstadt and Kaufhof. Above the entrances hangs the old Karstadt logo, it is advertised for the Karstadt customer card, otherwise everything seems the same. In the about 800 meters away Kaufhof branch looks similar.
A brochure, but two different offers
Perspectively, the sports area is to be enlarged. Also gastronomy and food should gain importance. This was announced on the company intranet. What is already there are the first joint offers – and a joint advertising campaign: „We are yours together.“
„The new campaign itself is not bad, but it has to be lived,“ says Martin Fassnacht, marketing and commercial professor at the WHU Otto Beisheim School of Management. „You also have to see that on the floor, and you can not raise customer expectations too much.“ In the joint prospect there are separate offers for Karstadt and Kaufhof. That makes little sense, so Fassnacht.
New logo: Not creative, but pragmatic
The common logo „Galeria Karstadt Kaufhof“ was unveiled in mid-March – a mix of the company’s previous names and colors. „The new common brand and logo may not be very creative, but it’s not about creativity,“ says Fassnacht. To find a new brand and build awareness costs way too much money and time. That is a pragmatic way.
The merger of the former competitors is a mammoth task. „Bringing together equivalent companies is extremely rare,“ says Gerrit Heinemann, Professor of Business Administration, Management and Commerce at Niederrhein University of Applied Sciences. It is also questionable whether the two companies can make enough profit at all. Both are looking back on some crisis years.
„Amazon is what used to be department stores“
Although there are synergies between the companies, the procurement is bundled, for example. But it raises the basic question of what future the department store itself has. „The assortment is very broad, from toys and sports goods to food, but at the same time it is very deep, meaning that there is a lot of choice, which means high costs,“ says WHU expert Fassnacht.
„Amazon is what used to be department stores, but at a lower cost.“ There are currently more than 170 department stores of the group in Germany. „Without branch closures it will not work, that can not be expected“, Fassnacht expects.
Shopping experience of the future?
The question is how the department stores can renew. „The decisive factor is whether shopping can be turned into an experience, for example with competent advice, a nice atmosphere, personal support.“
Heinemann sees another way: „Many houses have already turned into shopping centers, which means that space has been leased to external providers.“ Thus, rental income could be generated.
Customer service still separately
Exchange is currently only possible at the branch of the respective company. Michelle Jahn, a lawyer from the consumer center NRW, comments critically: „The merger of the two department stores should be without disadvantages for their customers and should be as permeable as possible, although this target does not seem to have been achieved at present because the customers of one company are not fully committed the other company can turn. “
Gift vouchers are currently only redeemable at the respective company. The customer programs are not yet united. When that will change is still unclear. From a uniform shopping experience for the customers one is currently still a long way away.
