Kaufhof is well known to German consumers having opened its doors 133 years ago.

FORBES: Galeria Kaufhof: The Leader in German Department Stores Successfully Navigates a Tough Climate

Despite the challenges, Kaufhof has found a way to become a leader in German retailing.

FORBES: Galeria Kaufhof: The Leader in German Department Stores Successfully Navigates a Tough Climate

Kaufhof has done an excellent job despite the difficult backdrop through its consistent merchandising.

FORBES: Galeria Kaufhof: The Leader in German Department Stores Successfully Navigates a Tough Climate

Leadership has transitioned to Galeria Kaufhof, making it one of the leading department stores in Europe.

FORBES: Galeria Kaufhof: The Leader in German Department Stores Successfully Navigates a Tough Climate

Kaufhof has renovated its stores in a new Galeria concept and is gaining share in this very competitive market.

FORBES: Karstadt -- Lack of Money, Excitement and Growth Equals a Slow Death

The main competitor for Karstadt is Kaufhof, a division of the huge Metro AG which has ample financial resources.

FORBES: Karstadt -- Lack of Money, Excitement and Growth Equals a Slow Death

The broad assortment offered by Kaufhof makes it a persuasive destination for shoppers.

FORBES: Galeria Kaufhof: The Leader in German Department Stores Successfully Navigates a Tough Climate

Another challenge Kaufhof faces are the German laws governing its hours of operation.

FORBES: Galeria Kaufhof: The Leader in German Department Stores Successfully Navigates a Tough Climate

Given a merger of Kaufhof and Karstadt seems unlikely, as its financial resources dwindle, a slow death at Karstadt may be the path to such a scenario.

FORBES: Karstadt -- Lack of Money, Excitement and Growth Equals a Slow Death

Its bigger rival, Metro, where Mr Urban worked for 25 years, also has a troubled German department-store chain, Kaufhof, but it has been partly redeemed by its substantial cash-and-carry business, which operates in 23 countries.

ECONOMIST: KarstadtQuelle