Competitor

Ferdinand, cognizant of the cause-and-effect dynamics, swiftly took action. Despite being unaware of the flour capitalists' involvement, he extended some goodwill towards Volvo, introducing a few additional flour brands to counter the situation.

He also saw an opportunity to teach Gottfried Department Store a lesson and secure his standing in the business.

Upon delving deeper into his investigation, Ferdinand discovered a crucial aspect about Gottfried. Despite being a giant in the Austro-Hungarian department store business, it struggled financially. The company adhered to a classic business model with family-style control, proving inadequate for the evolving times.

Ruprecht Helder, the current young head of the business, had ambitious plans. Discontent with the traditional business model, Ruprecht, a proud and somewhat aloof individual, faced challenges dealing with the existing management, comprised mostly of family members holding significant shares.

Ruprecht's foray into the supermarket sector aimed to break free from the limited control exerted by the existing management. Ferdinand was unsure about the role of the flour capitalists in this decision.

Tasking Franz with this mission, Ferdinand couldn't regard Ruprecht lightly, despite his acknowledged capabilities. Given the current state of Gottfried Department Store, Ferdinand doubted the prudence of opening new businesses and diverting their limited resources. Reforming their internal system should have been their top priority.

If Gottfried was to enter the supermarket sector, now wasn't the opportune time, and Vienna wasn't the ideal location. The retail business in Vienna was at its most intense, consuming the limited resources that Gottfried had.

Not only did Ruprecht enter the game, but he also focused on Vienna, launching ten supermarkets with grandeur. Two department stores were transformed into lavish spaces, setting a new standard in Vienna.

With Volvo having advanced this far, Ferdinand saw an opportunity to capitalize on the situation. Having support from other local markets, Ferdinand could endure the situation. Unfortunately, the first casualties were the small capitalists.

Gottfried Department Store's entry intensified the smell of gunpowder, and the first major setbacks were experienced by the large supermarkets. Their high operating costs, combined with a surge in customer traffic that resulted in losses, forced retailers with weak financial resources to exit the market.

In May 1884, the Katars Department Store declared bankruptcy, signaling the onset of a crisis. Within the next week, Philipp Department Store followed suit, initiating a wave of supermarket closures every three days.

Even Volvo, despite its large network, faced losses in several Vienna stores. Five stores in Vienna averaged a monthly loss of three hundred pounds, less than their peers.

Gottfried Department Store, newly entering the game, suffered significant losses due to high expenses associated with their elaborate stores. Ferdinand acknowledged Ruprecht's strategic prowess, attracting a substantial customer base with lavish designs, including a sizable portion of the middle class.

However, in 1884, the Vienna middle class was limited, unable to sustain large-scale supermarkets. To seize the market, Gottfried resorted to price cuts, maintaining discounts from the outset, incurring daily losses that jeopardized their future.

Franz took proactive measures, directing Schienbein Food Group employees to shop at Gottfried Department Store. This influx of thousands of customers instantly elevated Gottfried's reputation. Additionally, products set in advance were discreetly sent to other cities around Vienna, sold through Volvo stores to recoup profit margins, compensating for the losses in Vienna.

Ruprecht found himself in a sour mood. The vase in his office changed three times in a week.

Initially optimistic about the supermarket prospects for the department store, Ruprecht, with support from Hungarian flour capitalists, hastily ventured into the market. While anticipating losses as a means to boost the store's reputation, the unforeseen success of business exacerbated the financial strain.

Gottfried's ten stores in Vienna collectively incurred a loss of more than eight hundred pounds the previous month, with the largest store recording a staggering three thousand pounds in losses. Despite being a major business, Gottfried hesitated to withdraw from the price war.

Supermarkets were selling goods at a 95% discount from the factory price. Although this tactic aimed to initiate the price war, the more they sold, the more they lost. Gottfried Department Store proudly claimed the top spot in the market share, surpassing Volvo.

Despite this achievement, the mood at Gottfried Department Store was peculiar. Ruprecht, despite holding a majority of shares, struggled with the financial turmoil. The store had incurred losses exceeding 15,000 pounds the previous month, with signs of further increases.

With the supermarket business having cost Gottfried 80,000 pounds, Ruprecht faced a dilemma. Refusing to sell his shares to investors, he was left with two choices – either relinquish the 80,000 pounds invested initially, leading to a significant impact on Gottfried Department Store, or continue pouring money into the business. The latter option aimed to crush business rivals, allowing the market to return to normal and recouping the lost money.

The atmosphere in the Gottfried Department Store boardroom was tense as more than ten people, attendees of the meeting, inhaled cigarette smoke.

Ruprecht, devoid of his old confidence, addressed the room, "Well, with all of you here, then today's meeting will begin."