The decline in Galeries Lafayette, which worsened during the summer and early September, reached 20 percent compared to the same period last year. While sales in July have slightly increased the figures, the month of August was much calmer … and September was difficult, said the CEO Nicolas Houzé. Tourists from China, Taiwan and the United States normally represent half of the company’s turnover. But terrorist attacks have eroded France’s attractiveness to tourists. The number of visits is down about 8 per cent, this year compared to 2015. Galeries Lafayette is in talks with potential partners in China and the Middle East to open five new stores by 2020, according to the CEO.
Galeries Lafayette also has stores in Berlin, Casablanca, Jakarta, Dubai and Beijing, and plans to open in Doha and Istanbul in 2018.
Nicolas Houze said he was confident and that the group could reach a double profitability target by 2020, while maintaining annual investments at 150 million euros. Galeries Lafayette bought BazarChic’s flash e-commerce site last week after the acquisition of Instantluxe, a French e-commerce site that sells luxury leather goods, jewelery and accessories, sooner this year.
Galeries Lafayette also owns the department store BHV Marais. The situation at BHV Marais, which responds to a more local and Parisian crowd, was more stable.