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Employees are the strength of Galeria Dortmund

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Now that the Galeria department store in Dortmund has been rescued, the Group must quickly offer local employees a resilient, attractive perspective, says Prof. Dr. Axel Faix, expert in strategic management and lecturer at the Faculty of Business Studies at Dortmund University of Applied Sciences. The employees are the basis for the future success of "Galeria" in the former Karstadt flagship store on Westenhellweg.

Prof. Dr. Axel Faix

"Empirical studies show that employees play a significant role in the emotional appreciation of retailers by customers," explains the economics professor. "Customer loyalty in the retail sector is largely fed by this appreciation." The employees at the Dortmund location in particular have suffered during the months of uncertainty about their personal future, and quite a few have left the company. Closing the gaps and showing strong prospects must be a high priority for management.

After all, a sustainable, vital retailer with great appeal is also of great importance for the future of Dortmund's entire city centre, emphasizes Prof. Faix and explains: "We must not forget that the continuation of the local Galeria store was made possible primarily by the reduction in rent by the landlord." In order to take advantage of this opportunity in the long term, swift action is necessary. "However, concrete conceptual ideas do not seem to have progressed very far yet," criticizes the business expert.

Experience and convenience orientation

In order to make a comeback as an attractive retailer, Galeria Dortmund needs to develop a real competitive advantage by focusing more strongly on the experience. "Customers - older and younger alike - must feel like shopping at Galeria and not just need a new tablecloth or a new pair of trousers," says Prof. Faix. The focus on inspiring shopping experiences, including events and restaurants, could be complemented by a convenience orientation that focuses on the ease of shopping. It is also worth looking at multi-use concepts in cooperation with partners - presentation areas with changing providers, supplementary services and urban services. For the younger target group in particular, a convincing multi-channel offer is also needed that also takes up their social media habits.

Brick-and-mortar retail is still very important. Empirical studies show that a large proportion of visitors to city centers spend two to three hours there and visit three to four stores on average. "In order to appeal to them with tailor-made concepts, the importance of local characteristics must also be taken into account," emphasizes Prof. Faix. To do this, the Group must take even greater account of the expertise and creative ideas of its local employees.

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