HomeEconomyGaleries Lafayette in exclusive negotiations to sell BHV Marais

Galeries Lafayette in exclusive negotiations to sell BHV Marais

The group is in discussion with SGM (Société des Grands Magasins), which operates seven Galeries Lafayette stores in the regions.

The mythical BHV of Paris will change hands. In a press release, its owner since 1991, Galeries Lafayette, indicates that it has initiated exclusive negotiations with the SGM Group with a view to selling the premises and the business.

SGM (Société des Grands Magasins), which presents itself as a family business specializing in retail in the center of large cities, operates seven Galeries Lafayette stores in Angers, Dijon, Grenoble, Le Mans, Limoges, Orleans and Reims.

Covid and pedestrianization of rue de Rivoli

The project, which also includes the Parly 2 store, is still subject to the usual information-consultation processes as well as authorization from the Competition Authority, with the aim of being completed in the course of 2023.

“From my point of view, the acquisition of BHV Marais would be a unique opportunity. When one has always been committed to the development of retail in the center, how can one not be enthusiastic about the idea of ​​developing such a project in the heart of of the most beautiful city in the world? For the SGM Group, this is an exceptional opportunity to continue the growth of an important historical brand for the benefit of Parisians and visitors to BHV-Marais and the Parly 2 store”, commented Frédéric Merlin, President of the SGM Group.

For several years now, the Galerie Lafayette group has been wondering about the future of department stores in central Paris.

The repeated lockdowns that led to its closure for several months, combined with intense competition in the markets where the BHV is historically present (DIY, home, etc.) and the pedestrianization of rue de Rivoli, weighed heavily on activity. .

The advantages of the BHV are certainly numerous. But the strategy implemented is also facing strong competition in the group’s two historical markets. In DIY, you have to deal with the new web giants like ManoMano. In decoration and home, in addition to online competition, the BHV has to face IKEA, which has also set up shop on rue de Rivoli.

Author: Olivier Chicheportiche
Source: BFM TV

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