What:  The German department store is to receive a second time a relief from the German state in order to compensate for the losses due to the Covid-19 restrictions in December.

Why it is important:  On a budget-orthodox country such as Germany, such a support can raise questions and criticism, all the more that Galeria Karstadt Kaufhof was not in particular good shape pre-pandemic.

Galeria Karstadt Kaufhof has received a new German state aid of €220m, in addition to €30m towards the partial repayment of the financial aid that the group already received last year (for a total amount of €460m).

The group suffered from most of the German Covid measures, such as the cancellation of the Christmas markets, and this help raises questions and criticism from observers. So far, no one linked the fact that, while the German group is receiving state aid, its parent company, Signa, has teamed up with Thai-based Central Group to acquire Selfridges in the UK.

Galeria Karstadt Kaufhof receives €220m in aids from the German government