According to Frankfurter Allgemeine Zeitung, the leading German daily newspaper, Andrew Jennings, chief executive of Karstadt, the big chain of department and sporting goods stores, has informed the company's staff about the generally challenging situation in retailing ? which has prompted Karstadt's competitors to reduce retail prices significantly to counter the unsatisfactory environment. Textilwirtschaft, the trade magazine for apparel retailers, invited its suppliers to accept their share of the burden of price reductions by 50 percent ? a strategy that Karstadt has applied here and there, often with little success. According to the CEO's letter quoted by FAZ, Karstadt booked a net loss of €21 million in its financial year 2010-11, though detailed figures have not been published yet. The big loss is mainly a result of non-recurring items worth €33.5 million due to Karstadt's bankruptcy in 2009. Apparently, however, the operating income improved to a positive result of €16.3 million.

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