Retail shifts: Action expands in Croatia as Galeria faces German insolvency

The European retail sector is seeing significant shifts, marked by both expansion and insolvency. Action, a non-food discount retailer, is expanding its presence in Croatia with the opening of its sixth store in Zabok. The new 880-square-meter location offers approximately 6,000 products across 14 categories, with over two-thirds of items priced below 2 euros.

In contrast, the German department store chain Galeria is facing severe financial distress following its fourth bankruptcy filing in six years. Suppliers, including brands such as Playmobil and Geox, have utilized the legal mechanism known as 'Aussonderungsrecht' to cordoned off their products on shelves, preventing sales to ensure they retain ownership until paid. While the Federal Employment Agency has secured insolvency payments for 9,650 employees to cover monthly wage costs of nearly 25 million euros, analysts warn that the survival of the entire network is unlikely, with at least 30 locations facing imminent closure.