FRANKFURT (Reuters) - Canadian retailer Hudson’s Bay Co (HBC.TO) aims to increase sales significantly over the next five years at its recently-acquired German department store chain Kaufhof, its chairman told a German newspaper.
Hudson’s Bay managed to increase revenue by 30 percent over a period of five years “and this is what we are also aiming for in Germany”, Executive Chairman Richard Baker was quoted as saying by Handelsblatt.
The Saks owner bought Germany’s leading department store chain from Metro MEOG.DE for 2.8 billion euros ($3.1 billion), aiming to use it as a launch pad to expand into Europe.
Kaufhof’s 120 stores occupy prominent locations in most major towns and cities, employing 21,500 staff and making sales of 3.1 billion euros. It also operates 16 stores in Belgium.
The deal, the largest German inbound M&A this year, came as department stores are starting to enjoy a revival by investing in ecommerce in tandem with revamped flagship stores.
Hudson’s Bay lifted its sales forecast on Wednesday, saying it expected sales and earnings for the fiscal years ending in January 2016 and 2017 to “increase significantly” following cost cuts and the Kaufhof acquisition.
Reporting by Kirsti Knolle; editing by David Clarke