Galeries Lafayette to sell BHV
What: The Galeries Lafayette group continues to reduce its store portfolio. After franchising 38 of its department stores between 2018 and 2021, the group will sell BHV Marais, as well as the BHV located in Parly2 shopping mall. The buyer is SGM (Société des Grands Magasins), which already acquired 7 Galeries Lafayette stores in the past.
Why it is important: Galeries Lafayette focuses its efforts and investments on the continuation of works in its boulevard Haussmann flagship store (and its own network of 17 units), on its omnichannel strategy and on international growth (in China, India and the Middle East).
Galeries Lafayette will continue to operate Eataly Paris Marais.
The news comes at a troubled time for one of Galeries Lafayette’s affiliates Hermione People group & Brands (HPB) which took over 25 stores through franchising. Employees were on strike to alert on the lack of transparency and on the financial situation of their parent company.
HPB stated that there are no layoffs or store closure plans, adding that the company is healthy, with a turnover increase of +4.1% in 2022 vs 2021, and of +9.8% increase in January 2023 vs 2022.