Les Galleries Lafayette plans 800 million euro investment in expansion
French premium department store chain Galleries Lafayette launches a 800 million investment over five years. Objectives: to give more room for luxury brands and ray leather goods, shoes, watches and jewelery.
The space devoted to luxury brands, to leather goods, watches and jewelry and shoes, already expanded several years ago, will be further expanded. Both ground floor and first floor will be devoted to accessories. The “shop in shop ‘Vuitton, Cartier and Chanel will spread over two floors, each with its private staircase. Women’s ready-to-wear will be concentrated on three floors, while the fifth floor will be entirely dedicated to chlidren’s wear and accessories.
The food department Lafayette Gourmet will likely be moved to the Maison area (Home) and the freed up space could be turned into shoe department.
“Most of our revenue is realized by clothing, insists Paul Delaoutre, General Manager. Our sales are increasing, while the market goes down. Last year, we (Les Galleries Lafayette) became the leading seller of clothing in value, in France, in front of Carrefour. “
However, most of the chain growth comes from the upmarket tourists. Operators completed last year 60% of store sales of Haussmann. Ongoing work will double the surface to welcome more tourists, with no less than three dedicated areas: one Japanese and Americans in the basement, another to the Chinese on the ground floor, and the last to others, especially the Brazilians, called to become a growth driver.
“Improving the profitability of the brand allows us to increase our 50% annual allocation of investment,” said Paul Delaoutre. The latter has earmarked 800 million euros by 2017. The bulk will be devoted to work in 58 provinces of Galeries Lafayette (whose sales increased by 2% annually on average since 2006). “The concept of Haussmann is declinable everywhere in varying degrees, says Michel Roulleau. Prada, Gucci, Balenciaga and Saint Laurent will arrive in Strasbourg. The objective is to deploy anywhere Zadig & Voltaire, Kooples and Sandro, already present in thirty of our stores. “
adapted from Le Figaro