What: BHV returns to profitability in its first full year under SGM ownership, achieving €9.6 million EBITDA despite an 8% sales decline, as the retailer implements strategic changes including merchandise optimisation and store consolidation.

Why it is important: This turnaround demonstrates how strategic retail transformation, focusing on profitability over pure sales growth, can revitalise traditional department stores even amid challenging market conditions.

In its first full year under SGM ownership, BHV has achieved a remarkable financial turnaround, generating an EBITDA of €9.6 million in 2024, compared to a €15 million loss in 2023. This improvement comes despite an 8% decline in sales to €260 million, affected by factors including inflation, Olympic Games disruption, and adverse weather conditions. The transformation encompasses significant operational changes, including new information systems implementation, cost reduction initiatives, and a comprehensive merchandise strategy that introduced 200 new brands while eliminating underperforming categories. The consolidation plan includes transferring the men's department from rue de la Verrerie to the main building and discontinuing children's retail space. Looking ahead to 2025, SGM aims to complete BHV's independence from Galeries Lafayette and enhance commercial dynamism through new retail concepts and dining options.

IADS Notes: BHV's transformation under SGM ownership shows significant progress since the November 2023 acquisition. Following the appointment of Emmanuelle Claverie-Veysset as general manager on November 28, 2023, the company began implementing strategic changes focused on customer experience and digital presence. By mid-September 2024, early signs of recovery emerged with a positive EBITDA of €150,000, despite initial sales challenges. This groundwork has culminated in a full-year 2024 EBITDA of €9.6 million, marking a dramatic turnaround from 2023's €15 million loss, even as sales declined 8% to €260 million. The introduction of 200 new brands while discontinuing underperforming sectors demonstrates SGM's commitment to strategic merchandise optimisation, with plans for further transformation including the integration of the men's department into the main building and potential property acquisition from Galeries Lafayette by summer 2025.

BHV sales drop, returns to profitability