The future of the inner-city department store and necessary adaptations to assortments, spaces, and locations are central topics of a current discussion. Tilo Hellenbock, Managing Director of GALERIA, commented on this in the latest episode of the Lührmann podcast “Standort Innenstadt” (Inner-City Location). In conversation with Hendrik Poggemann and Markus Schäfer, Hellenbock addressed GALERIA's ongoing transformation and the far-reaching changes in bricks-and-mortar retail. A significant focus of the discussion was on the strategic realignment of the department store to achieve greater coherence with local customer structures.
Hellenbock addressed consumers' changing purchasing habits and the resulting need for continuous development of assortments. He explained GALERIA's intention to appeal more effectively to different target groups in the future. The discussion also covered the real estate specific aspects of department store development. Many existing properties have historically evolved space structures that no longer meet the demands of today's retail. It was discussed what optimal size a department store should have in the future and which number of storeys prove to be functional.
Real Estate as a Key Factor in Transformation
Opportunities for space reduction and the integration of mixed-use concepts were identified as crucial strategies for adapting to modern retail concepts. The elementary cooperation with property owners was emphasised in order to synchronously develop retail and real estate concepts further. Hellenbock highlighted the significant importance of inner-city prime locations for GALERIA and stressed the necessity of individual solutions for the further development of the individual stores. The explanations spanned from operational retail business to investments and project developments, right through to the indispensable role of large department stores as footfall generators for city centres.
In addition to strategic and real estate economic issues, the podcast episode also shed light on Tilo Hellenbock's personal career path in retail. He reported on his professional stations at companies such as Lidl and Peek & Cloppenburg, as well as his move to GALERIA. He also spoke about the responsibility that comes with the comprehensive transformation of the company.
Discussions and Publication
The discussion focused on the dynamic developments in retail and the resulting implications for the real estate sector, particularly in the context of inner-city retail locations. The episode offers a detailed analysis of the challenges and potentials arising from the changed market conditions. The podcast “Standort Innenstadt” featuring Tilo Hellenbock will be released on 22 September 2026 and will be accessible on all relevant podcast platforms.
