31 August 2021
The Weekly

Galeries Lafayette announced the launch of a project to grant franchises for 11 stores of its retail network in France to partners selected for their strong local roots. The objective is to adapt impacted stores to local customer expectations. The stores included in the project generate a cumulated €200mn turnover annually — one tenth of Haussmann flagship’s €2bn takings — but are nonetheless at the heart of the retail environment of the medium-sized French cities they are located in. Seven locations, including premises and operations, will be sold to Société des Grands Magasins, a family-owned company specializing in high street retail spaces. Hermione People & Brands, the retail arm of property investment and development company Financière Immobilière Bordelaise Group, will take over the operations of three stores, adding to the 22 stores they purchased in 2018. The project should not have any impact on employment and has been presented to employee representatives. Newly franchised stores will continue to have access to the full fashion offerings, be included in marketing campaigns and in-store events. By early 2022, Galeries Lafayette expects to operate 19 stores directly and 38 as franchises