French department store group Galeries Lafayette is set to close down the first European branch it opened outside France in 1996.
The company revealed in a news statement that its Mitte location in Berlin would shut down by the end of 2024. The Galeries Lafayette-occupied building, which is owned by real estate developer Tishman Speyer, does not want to extend its lease. The reason for this is because “German consumer expectations” have changed, and “the commercial dynamics of the city have undergone a very significant change.”
The closure was announced to the group’s labour relations partners on 4th October. There are 190 workers at the 9,000 square metre store on Friedrichstrasse who could lose their jobs.
Nicolas Houzé, CEO of Galeries Lafayette, said he had “learned a lot, and very much appreciated the opportunity of being able to offer the best in French art of living to our German customers for nearly 30 years.”
Excluding France Luxembourg will be the last European location for Galeries Lafayette. The company runs 12 other locations with retail partners across the globe, including in the Middle East (Dubai and Doha) and Asia (Jakarta, Beijing, Shenzhen, and Shanghai, among others). In the upcoming years, Galeries Lafayette plans to open locations in Macau, Chongqing, Mumbai, and New Delhi as part of its concentration on this continent.
