Metro creates new structure for department store business

German retail giant Metro Group has unveiled plans to combine the operating and property businesses of its department store division, Galeria Kaufhof.

The joint holding will operate under the name of Galeria Holding and will be led by Galeria Kaufhof CEO Lovro Mandac. The structure will consist of two pillars: the modern multichannel department store business and the real estate portfolio comprising 59 assets with a total area of more than 760,000 m2.

'The aim is to achieve an efficient co-operation and coordination between the department store operations and the real estate activities geared to meet customer needs,' the company said in a statement. 'The task of the real estate management is to realise the earnings and value enhancement potentials of the properties’ portfolio owned and operated by Galeria Kaufhof.'

Henning Klöppelt, a former Warburg Henderson KAG's director, has recently been appointed as new chief real estate officer.