Galeries Lafayette closes its Beijing store

Beijing – French group Galeries Lafayette is closing its Beijing store on Wednesday after 13 years of operation. The closure is attributed to evolving customer demands and a slowdown in the luxury market in a country once considered an eldorado for the sector.

On Tuesday, the day before the closure, a steady stream of customers browsed the boutiques of the immense six-storey store in the heart of the capital, searching for last-minute bargains.

At the same time, employees were packing up unsold stock and mannequins. They were also helping to clear the shelves of handbags, clothing, shoes and children's toys before the retailer closes its doors for an indefinite period.

“Don't be sad, this is not a final farewell,” the store stated in a message posted on social media in early May. “See you soon, Beijing,” it promised. In a statement in mid-May, Galeries Lafayette cited evolving customer expectations.

“Modern shoppers increasingly prioritise convenience, superior quality service, more enriching experiences and a greater sense of well-being,” it said. “The retailer intends to offer more functional and agile stores, with a greater focus on the selection of brands and products,” it added. Galeries Lafayette's management had separately explained that the Beijing store, at 48,000 square metres, was too large to be modernised without major investment.

China was experiencing a period of strong luxury growth when Galeries Lafayette opened its first mainland China store in Beijing in 2013.

The rise of the middle class at that time held the promise of new opportunities for brands that had previously been inaccessible to the majority of people in China. Since then, the country has faced the Covid-19 pandemic and a deep property crisis with serious economic repercussions. Stagnant domestic consumption has also taken its toll.

Galeries Lafayette has assured that the closure of the Beijing store does not call its presence into question. It has three other stores in mainland China in Shanghai (east) and Shenzhen (south), and in the special administrative region of Macao.

In China, Galeries Lafayette operates through a 50-50 joint venture with a local partner, Hopson Group. It was a tenant of the Beijing store.

Internationally, the group has stores in Indonesia (Jakarta); India (Mumbai and New Delhi); the Middle East (Dubai and Doha); and Luxembourg.