What: Globus, now solely owned by Central Group, is facing mounting financial pressures, leadership changes, and a move away from its premium positioning.

Why it is important: The shift in Globus’ strategy and leadership reflects broader trends of internationalization and restructuring in the retail sector, with implications for profitability and brand identity.

Following the collapse of its former partner Signa, Central Group has become the sole owner of Globus, the Swiss department store chain founded in 1907. This transition has brought significant financial challenges, including the inheritance of pandemic-era debt and ongoing high operating costs, particularly for its flagship Zurich store. Despite substantial investments in recent years, Globus has struggled to return to profitability. Under the new leadership of Pierluigi Cocchini, who headed La Rinascente in Italy, the retailer has shifted from a premium positioning to a strategy focused on aggressive discounting and frequent thematic sales. This approach, while intended to drive traffic and sales, risks eroding the brand’s luxury image and training customers to wait for promotions.

IADS Notes: Central Group’s full takeover of Globus following the collapse of Signa reflects a broader trend of strategic investors acquiring prime European department store assets amid ongoing sector turbulence. As detailed by Vindobona in August 2025, the redistribution of Signa’s retail properties, including Globus, has attracted experienced operators seeking to stabilize and reposition these iconic stores. The aftermath of Signa’s bankruptcy has been marked by legal and financial complexities, with Central Group also acquiring KaDeWe and navigating the fallout from its former partner’s collapse (Fashion Network, December 2024). The arrest of Signa founder René Benko in January 2025 (Fashion Network) further underscores the sector’s volatility and the heightened scrutiny facing new owners. Globus’ recent shift from a premium positioning to aggressive discounting and thematic sales mirrors industry-wide moves toward more targeted, margin-aware promotional strategies, as seen at Amazon and LuisaViaRoma (WWD, July 2025). Meanwhile, the financial instability at Globus, including unresolved debt and potential downsizing, aligns with broader restructuring trends in the department store sector, as illustrated by Lindex’s strategic review (placera.se, December 2024) and Saks Global’s cost-cutting maneuvers (WWD, August 2025). High real estate costs, particularly for flagship locations, continue to challenge profitability, echoing the “downtown flagship store downturn” documented by The Robin Report (March 2025) and BoF (December 2024).

Globus is struggling to be back to black