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125 years of history in commerce and retail, 290 stores, 14,000 employees, usually 60 million visitors per year and EUR 4.5 billion in yearly turnover (pre-pandemic): those are a few figures describing the Galeries Lafayette Group. But it is especially famous for its prestigious boulevard Haussmann flagship store. Usually relying on 200 nationalities accounting for 60% of its EUR 2 billion yearly turnover (2019 figures), the store occupies the coveted, yet challenging number one position of Paris’ department store scene.

Being number one implies being able to stay in step with customers’ expectations, attract Millennials and GenZ, as well as locals and tourists thanks to a great product offer, convenient services and memorable experience. And in 2021, after more than 200 days closed since the beginning of the pandemic, reinvention is also to be added to the list.

On 7 September, Alexandre Liot (Haussmann Store Director), Marianne Romestain (Chief Merchandising Officer) and Guillaume Gellusseau (Director of Communication and Marketing) unveiled the new “Le Grand Magasin de Tous” (translating to “a department store for all”) programme rooting in the very purpose of a department store: be a place for discovery, enjoyment and entertainment. We attended the press conference for you, and we are delighted to report back this exciting member news.

Reinvention, since 2018

In truth, reinvention started in the Haussmann store way before Covid with the “Programme Lumière” (translating to “Light Programme”) to run until its completion planned in 2024. Since 2018, the rooftop, kidswear, home, lingerie and a part of the beauty departments have been revamped to answer to a fast-evolving customer base. The historic dome has also been beautifully restored and transformed into an experience itself, thanks to a suspended gravity-defying glass walk platform (accessible from the third floor) allowing customers to get closer to it.

Digitalisation has also slowly developed: as stated during the press conference, e-commerce was only accounting for 2% of the turnover in 2019 and now reaches 25%. Such tremendous transformation basically happened in 4 months showing the company’s agility and ability to adapt. E-commerce is expected to stabilise at a 15% to 20% business share once life is back to normal. It has implied a true change in the way the store is considered: Galeries Lafayette’s management is now referring to the Haussmann store as a ‘navire phygital’ (translating to ‘phygital ship’) instead of the usual flagship store expression.

Reinvention at Galeries Lafayette is underpinned by 4 strategic objectives:

• Accelerating on local customers: despite a 60% share of international customers, Galeries Lafayette started refocusing on locals by redesigning its loyalty programme at the end of 2019.
• Remaining an unmissable Parisian attraction in a context of increased competition with the opening of La Samaritaine: on top of the expected fashion offer, the store wants to propose experiences through restaurants, cultural events and new partnerships that will be disclosed in 2022.
• Keeping its position with international shoppers: despite the absence of Asian tourists, performances with European, Middle-Eastern and American customers have been quite good considering the travel restrictions. Since the store reopened last May, the turnover achieved with these customers is “only” -20% compared to 2019.
• Benefitting from new growth engines appealing to younger generations: with the second-hand business.

These 4 objectives are very clearly reflected in the new Haussmann store propositions: a new highly attractive women’s shoe floor able to appeal to both locals and tourists, and a women’s ready-to-wear offer renewed with ‘Instabrands’ and circular fashion options, in step with Millennial’s and GenZ’s expectations.

New women’s shoe floor: the higher the heel, the closer to heaven

It’s literally true as the Haussmann women’s shoe floor moved from the basement to the fourth floor. Comparing to the previous location, the move includes new brands and extended footage, making it the biggest women’s shoe department in Europe with a 4,000 sqm surface. The large offer justifies a trip to the store and is, without a doubt, the most relevant in Paris.

Covering Luxury, Premium and Mid-range price segments (respectively accounting for 35%, 20% and 45% of the offer in 2020 (according to the information gathered during the last IADS Merchandising Meeting dedicated to Leather Goods & Shoes), the assortment now proposes 200 brands, 60 corners, 35 exclusive products and 10,000 SKUs. The shoe floor also brings innovation in the way brands are segmented and displayed. Two large lookalike multi-brand stores are available to the customers: the ‘Designer Galerie’ gathering luxury brands such as Alaïa, Balmain or Maison Margiela, and the ‘Creative Galerie’ offering “emerging” labels like Ganni, Rejina Pyo or Staud, both spaces being filled with natural light with an eye on Paris’ rooftops. A third multi-brand store has been designed to embrace the casualisation trend: the ‘Sneakers Galerie’ features a nice 20-metre luminous wall and offers all sorts of options from classic brands such as Nike and Adidas, to creative labels like Axel Arigato or Eytys..., and responsible ‘Go for Good’ labelled brands (Spring Court, Faguo, Good News, Viron...).

Circling around the base of the famous dome, the shoe department has been designed by Belgian architect Bernard Dubois. The design concept is mixing hardwood and concrete floors. Colours are evolving around earth tones, display furniture is made of concrete resin and medium wood. Impressive large resin rocks, where seats have been carved out, are giving visual rhythm to the shop floor.

The floor is completed by a Maison Michel shop-in-shop and a shoe repair/recycling station run by Veja. Customers can also buy Pierre Hermé macaroons or have a latte at EL&N, a coffee shop coming from London and naming itself “the most Instagrammable café in the world”. A concierge counter is also available as well as a Kure Bazaar mani-pedi station.

Premium and Mid-range women’s fashion: brands, brands, brands

Between 2020 and 2021, Galeries Lafayette embarked on 140 new brands, no less. As a result, a third of the brands have been renewed, bringing a much-needed offer-refresh able to appeal to younger local customers. Taking advantage of the store closures, the women’s fashion department has been revamped on the second and third floors, the ones dedicated to the Premium and Mid-range offer. In 2020, these price segments are respectively representing 30% and 20% of Galeries Lafayette’s womenswear business, the Luxury segment accounting for 50% (according to the information gathered during the last IADS Merchandising Meeting dedicated to Women’s Fashion).

Three new spaces are contributing to a clearer and more appealing brand segmentation: an Instabrands-DNVB (Digital Native Vertical Brands) space, the ‘Social Galerie’ and the ‘Creative Galerie’ (echoing its sister from the shoe floor) which will be renewing brands and offers on a regular basis. Brand corners have been revamped with new common signage, contributing to a clearer impression. The lingerie area, a new denim bar and a ‘fashion sport’ section complete the 2-storey offer.

The ‘Creative Galerie’ is a 225 sqm space nested on the second floor and gathering about 30 brands (including 15 new ones): the selection is dedicated to fashion addicts and is quite edgy. Customers can shop brands such as Stella Nova, House of Dagmar, Nanushka, Rejina Pyo, Anine Bing, The Frankie Shop… Additional new ready-to-wear brands are complementing this new space: Ganni, Laurence Bras, Proenza Schouler White Label, Valentine Gauthier, Dawei…, but also accessorie brands such as Staud for the leather goods, Annelise Michelson or Gossens for the jewellery.

On the third floor, new sections are displayed to appeal to Millennials and GenZ: the ‘Social Galerie’, and a large space dedicated to DNVBs and ‘Instabrands’ such as Songe Lab, Janne Mill or Pretty Wire. These brands are opening their first physical stores, showing once again how relevant a department store is to the development of such labels. The ‘Social Galerie’ is a unique concept where customers will find digital-native brands offering accessories, last-minute gifts and souvenirs. A famous DNVB will also launch during the next Paris Fashion Week: Skims by Kim Kardashian. Putting together these new sections surely benefited from Galeries Lafayette Champs-Elysées, the first to offer niche and Instagram brands.

(Re)store, a new venture in the responsible fashion market

Three years after launching their ‘Go For Good’ label which highlights products with a reduced impact on the environment, Galeries Lafayette is opening a large section dedicated to circular fashion on the third floor. ‘(Re)store’ is clearly designed for the younger generation and is associating vintage products through 7 different partners (Monogram, Relique, Petite Chineuse…) and eco-responsible labels, and ranges from Luxury to Mid-range price segments. Services are complementing the offer. A resale salon is available to customers: depending on the item, one of the partners will deal with the client’s pre-loved item. A collection point for donations to associations is also planned. An innovative hardware store featuring products in step with a more responsible way of life offering knitting kits, made in France accessories, organic washing products… occupies a fair share of the space. A new attractive digital-native concept, ‘Club Couleur’ (translating to ‘Colour Club’ is reviving second-hand objects (fashion, accessories and decoration) by re-colouring them.

Start spreading the news

Such revamp is supported by a 360° omnichannel ad campaign imagined by DDB agency, photographer Lei Wei Swee, and filmmaker Jason Yan Francis: it includes social networks with a film blasting an exclusive Marc Cerrone disco music, billboards and press ads, a set of emojis, store windows... Four values are at the heart of the campaign: joy, inclusivity, energy and a youthful spirit. It is full of rhythm and colours and is supposed to speak to all customers from queens (aka older customers), cowboys (appealing to the new masculinity), innocents (kids), beauty addicts, artists (for the home lovers), educated palates (Lafayette Gourmet), trendsetters and visionaries (echoing the company’s responsible offer). The campaign is all about the enjoyment to be found in ‘Le Grand Magasin de Tous’, reminding of Galeries Lafayette’s founder whose philosophy was to gather everything and everyone under the same roof.

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As an introduction to the press conference, Alexandre Liot was saying that “under such challenging circumstances, it’s all about dying or acting and reacting”. Clearly, Galeries Lafayette picked the second option and has set an ambitious women’s fashion revamp as a new chapter of the ‘Programme Lumière’. This new chapter is all about the Haussmann store, and after recently announcing that 11 provincial stores will become franchises, this is confirming again the company’s refocus on flagship locations.

Competition is gaining traction and the ‘phygital ship’ now has to compete with the brand new Printemps commitment to sustainability and has to be strategically poised for the return of tourists. The Asian tourism consumption in Paris is a large business but the cake is not extensible, so it’s key for the department store to be ready to win the fight against DFS-La Samaritaine. The ‘Programme Lumière’ is not fully achieved yet so we’ll see what the next moves will be. In the meantime, optimism for the future shows thanks to the addition of a new flight of escalators. Installed to better handle the customer flow and unclog circulation on the ground floor, Galeries Lafayette Haussmann is ready for hordes of customers when life is finally back to normal.

Credits: IADS (Christine Montard)