Metro, Europe’s fourth largest retailer, is selling off its Kaufhof department stores to Canada’s Hudson’s Bay for some 2.8 billion euros.
The deal comes as high street shops are starting to enjoy a revival of fortunes after suffering from the rise of global fashion chains and online shopping.
Kaufhof is Germany’s leading department store and also operates in Belgium. It now plans to develope its cash-and-carry and consumer electronics businesses.
It has steadily sold off non-core businesses in recent years as it tries to reduce debt.
Hudson’s Bay says the move is a step forward in its plan to become a “premium global retailer.”