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Department stores benefit as domestic economy recovers

Germans are returning to department stores in droves, with major companies recording increased sales just a year after the demise of such businesses was being foretold.

Published: 14 November 2010 12:52 CET

Department stores benefit as domestic economy recovers

Photo: DPA

The Frankfurter Allgemeine Zeitung reported on Sunday that figures from the Society for Consumer Research (GfK) showed many department stores were performing very well this year.

“The downwards spiral recorded in turnover of department stores for decades will stop for the first time in 2010,” Manuel Jahn, from the GfK, told the paper.

“Many businesses are doing astoundingly well.”

GfK figures show that leader in the German department store market Kaufhof, will show a comfortable increase in turnover, while Kaufhaus Ludwig Beck is expecting a record profit for this year and Stuttgart-based Kaufhaus Breuninger is planning to open a new store on the back of double-digit growth.

“The department store is alive, and how!” said Lovro Mandac, head of Kaufhof. “More than two million people come to our stores day for day. And they are certainly not coming to see a post mortem. We are the second largest watch and jewellery seller in Germany, no-one sells more women’s underwear and we are number one in polished diamonds.”

Department stores are benefiting from the general economic upswing in the country, the paper said, while people are increasingly choosing to shop locally rather than at large out-of-town stores.

Economics Minister Rainer Brüderle said the expectation of a busy pre-Christmas shopping period is proof that the economic recovery is no longer restricted to export business.

“The spark from the export firework has jumped over to the domestic economy. The recovery is thus on two firm legs and is increasingly seen in the wallets of the citizens,” he said.

The Local/hc

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Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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