Galeries Lafayette Haussmann's growth and strategy
What: Galeries Lafayette Haussmann achieves double-digit growth in H1 2025, driven by tourism recovery and strategic store improvements that position it among Europe's top-performing luxury department stores.
Why it is important: The flagship's performance demonstrates how strategic store improvements and luxury brand expansion can drive growth even amid shifting tourist demographics, setting a benchmark for department store evolution.
Galeries Lafayette's famed Boulevard Haussmann flagship is experiencing remarkable growth in 2025, outperforming the estimated 9% increase in French tourism. The store welcomes an impressive 37 million visitors annually, with international customers accounting for 60% of footfall. Under the leadership of Guillaume Houzé and Arthur Lemoine, the store has undergone significant transformations, expanding spaces for prominent French runway brands and enhancing luxury boutiques. Notable additions include private salons for key brands and a striking new Phoebe Philo boutique. The store's strategic focus on both established luxury houses and directional fashion has proven successful, with Louis Vuitton's boutique ranking among the brand's top five worldwide locations. This comprehensive approach to retail excellence is expected to drive turnover beyond €2 billion in 2025, with the 70,000-square-metre space effectively balancing various retail categories from fashion to beauty and home goods.
IADS Notes: Galeries Lafayette Haussmann's impressive performance in early 2025 builds upon strategic initiatives launched throughout 2024. As reported in November 2024, the store had already shown strong momentum with a 15% sales increase, driven by renovated spaces and enhanced brand offerings. The current growth aligns with the company's €400 million investment plan announced in February 2025, which focuses on modernising the flagship while expanding internationally. The store's success in attracting both luxury shoppers and tourists reflects findings from January 2025, when the addition of premium brands like Phoebe Philo demonstrated the retailer's commitment to elevating its luxury positioning. This strategy appears particularly effective as the store shifts from relying on tour groups to targeting individual shoppers, a trend identified across Parisian luxury retail in early 2025.
