Galeries Lafayette to invest €400 million in five years (#1681726)

Department store group Galeries Lafayette will invest another €400 million over the next five years, seeking to expand and modernise its store base and raise its game within an extremely disrupted retail sector.

“Continuing to invest massively is essential. In digital solutions, of course. But also in tactical areas, less immediately noticeable by customers, such as escalators and air conditioning, among others,” said Nicolas Houzé, president of the Galeries Layette’s executive committee in an interview with La Tribune. “And in highly visible areas too, as we did in 2021, when we renovated the historic dome of the Haussmann branch [in Paris],” he added, referring to the group’s flagship store.

“We have invested €400 million in five years to modernise our stores, including €100 million for the Paris one. We are planning an equivalent investment budget for the next five years,” said Houzé.

The retail sector is currently facing major challenges to its business model, as illustrated by the difficulties of many hypermarkets as well as apparel and toys retailers, hit in quick succession by the Covid pandemic and the boom of e-tail.

Galeries Lafayette will also strengthen its international presence over the next two years, particularly in India, where the group will open a store in Mumbai next year and another in New Delhi in 2026, according to Houzé.