Galeries Lafayette is not only closing stores in France. In 2024, the group also pulled the curtain down on its flagship store in Beijing, a closure that went relatively unnoticed in the French media. This dual movement, both national and international, tells the same story: that of a department store model searching for relevance in the face of transformed consumer habits.
Closure of the Galeries Lafayette flagship in Beijing: a strong signal in 2024
The Galeries Lafayette store in the Xidan district of Beijing closed its doors at the end of May 2024. Opened in 2013, it lasted just over ten years. The reason given by management is straightforward: too big, too expensive, not enough customers.
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The decline in luxury consumption in China weighed heavily in the decision. The profile of the Chinese consumer has changed: less attracted to large physical retail spaces, more focused on online shopping and local experiences. The French department store model, transplanted as-is to Beijing, did not find its audience over time.
However, the group has not left China. Three other stores remain open in Shanghai, Shenzhen, and Macao. The strategy resembles more of a refocusing than a withdrawal. Beijing was the most exposed and least profitable point of sale: it was the first to fall.
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To find the complete list of closed Galeries Lafayette stores in France, the scope is much broader as twenty-six points of sale are affected.
Twenty-six Galeries Lafayette stores in France: why the franchisees are the ones suffering
Have you noticed that the announced closures do not affect the flagship store on Boulevard Haussmann in Paris? This is not a coincidence. The twenty-six targeted stores are all franchised points of sale operated by the Hermione Retail group. Those managed directly by the parent company of Galeries Lafayette are not included in this list.
The distinction is fundamental. Hermione Retail operates the Galeries Lafayette brand under license in medium-sized cities, with more modest spaces and a local clientele. The business model of these stores relies on a premium positioning in areas where purchasing power and visitor flow are no longer sufficient to maintain profitability.
A franchisor that protects its brand, a franchisee that absorbs the shock
The parent company retains its most prestigious stores in major metropolitan areas and tourist zones. The Hermione Retail group, on the other hand, is facing a safeguard procedure. This legal mechanism allows for a temporary freeze on debts in an attempt to reorganize the business.
The employees of these twenty-six stores are the first to be affected. Several hundred jobs are at stake in cities where alternatives in high-end retail are scarce. Local authorities are closely monitoring the negotiations, as the closure of a department store in the city center has a domino effect on neighboring businesses and the attractiveness of the area.
Galeries Lafayette and city centers: what the closures change for local commerce
A Galeries Lafayette store in the city center is a commercial locomotive. Customers who go there pass by other shop windows, have lunch nearby, and use the center’s parking. When the locomotive stops, foot traffic decreases, and surrounding businesses lose revenue.
The cities affected by these closures often share a similar profile:
- City centers already weakened by competition from peripheral shopping areas and online commerce
- A population base insufficient to maintain a premium positioning in fashion and accessories
- Commercial leases on large spaces, difficult to take over by other retailers of equivalent size
Why this choice to close rather than reposition? The answer lies in the cost of transformation. Adapting a department store often costs as much as opening a new one. Reducing space, changing the product range, integrating corners of different brands: each option requires a heavy investment for an uncertain return in declining commercial areas.
Galeries Lafayette closures 2024: a department store model to reinvent
The simultaneous closure of Beijing and twenty-six French stores in the regions draws the same conclusion. The generalist department store, as it was designed in the 19th century, still works in capitals and major tourist spots. Everywhere else, the model must transform or disappear.
The brands that are surviving are betting on three levers:
- In-store experience (events, pop-up corners, dining) to justify physical visits
- Reduction of sales areas in favor of service and leisure spaces
- Integration of digital, with online ordering tools and in-store pickup
Galeries Lafayette is not the only one affected. The department store sector is undergoing a transformation across Europe. The closures in 2024 in France and China are not isolated accidents, but symptoms of a structural mismatch between physical offerings and current buyer expectations.
The stores maintained by the parent company, like the one on Boulevard Haussmann in Paris, will continue to leverage their prestige and tourist flow. For medium-sized cities that lose their brand, the question remains open: what business can take over such large premises without reproducing the same economic difficulties?