Globus Sells Five Former Real Stores: Why the Concept Failed

Introduction

Globus, a German hypermarket chain, recently announced the sale of five former Real stores. These stores were acquired by Globus in 2020 as part of a deal to take over Real's German operations. However, Globus has struggled to successfully integrate these stores into its own network, leading to the decision to sell them.

Reasons for Failure

Several factors have contributed to the failure of Globus's concept in these five former Real stores:

• Lack of Differentiation: Globus's concept in these stores was very similar to that of Real, which led to a lack of differentiation and customer confusion.
• Unfavorable Locations: The five stores were located in areas with relatively low population density and poor accessibility, which made it difficult to attract customers.
• Competition: The stores faced intense competition from other supermarkets and discounters in their respective markets.
• Operational Challenges: Globus encountered operational challenges in integrating the stores into its own systems and processes, which resulted in inefficiencies and customer dissatisfaction.

Impact on Globus

The sale of these five stores represents a setback for Globus's expansion plans in Germany. The company had hoped to use these stores to gain market share and strengthen its position in the German retail market. However, the failure of the concept has raised questions about Globus's ability to successfully integrate acquisitions and compete with its rivals.

Conclusion

Globus's sale of these five former Real stores highlights the challenges that retailers face when acquiring and integrating new businesses. It is essential for retailers to carefully consider the fit between their own concept and the acquired stores, as well as the competitive landscape in the target markets. Failure to do so can lead to operational difficulties and customer dissatisfaction, ultimately resulting in the failure of the acquisition.