Galeries Lafayette announces a EUR 400 million investment plan

What: Galeries Lafayette announces a EUR 400 million investment plan over the next five years to modernise its store network and strengthen its market position, while pursuing international expansion in India and maintaining growth momentum.

Why it is important: As traditional retail faces unprecedented challenges, this substantial investment demonstrates Galeries Lafayette's commitment to adapting its business model through strategic modernization and global expansion, particularly in emerging markets.

Galeries Lafayette has unveiled plans to invest EUR 400 million over the next five years, matching its previous five-year investment cycle, to develop and modernise its store network. Nicolas Houzé, President of the Executive Board, emphasises the importance of comprehensive investments spanning digital infrastructure and physical improvements, including essential updates to escalators and air conditioning systems. The investment strategy also encompasses visible enhancements, such as the renovation of the iconic Haussmann store's historic dome. While strengthening its domestic presence, the company is simultaneously expanding internationally, with planned store openings in Mumbai next year and New Delhi in 2026. This dual approach reflects the company's response to evolving retail challenges and its commitment to maintaining its position as a leading global department store group.

IADS Notes:
The investment announcement comes amid significant transformation in the retail sector. The company's recent success at its Haussmann flagship, showing 15% sales growth this autumn, validates this strategic approach. Under Nicolas Houzé's leadership, the group is pursuing ambitious international expansion plans, particularly in India, while maintaining its growth trajectory in China . The comprehensive renovation of its flagship store  demonstrates how the company is balancing heritage preservation with modern retail requirements.