The retail scene in Germany continues to stymie a rebound in Europe as a high unemployment and a stagnant economy keep consumers out of the stores. German retailing and mail-order powerhouse Karstadt-Quelle AG is both a recipient and a contributor to the problem, reporting last week that they would add about 5,700 people to the German unemployment line that already numbers than 5 million people, or more than 10% of the workforce.
The retailer, which runs sporting goods stores as well as golf and run specialty shops, posted a 1.63 billion ($2.11 bn) loss for fiscal 2004, versus a 108 million profit in 2003. Sales fell 6.8% to 13.45 billion ($17.45 bn), with department store sales down 5.6% and mail-order sales down more than 7.0% in 2004.
The announced loss for the year comes on the heels of the departure the prior week of former CEO Christoph Achenbach, who lasted just 10 months in the job. Company CFO and interim chief Harald Pinger said the company may sell off assets, including its Runners Point and Golf House specialty stores.
