Galeries Lafayette, the renowned French department store group, has made the decision to close its Berlin store, bringing an end to its presence in Europe outside of France. The store, located in the Mitte district, will cease operations by the end of 2024 as Galeries Lafayette has chosen not to renew its lease for the Jean Nouvel-designed building, currently owned by real estate developer Tishman Speyer.
One of the key factors contributing to this closure is the evolving consumer expectations in Germany. Galeries Lafayette recognizes that the city’s commercial dynamics have significantly changed, making it less conducive for their business operations. Although the Berlin store has been open since 1996, the transformation of the city and the emergence of new competitors have made Galeries Lafayette feel out of place.
The announcement of the closure was shared with the group’s industrial relations partners on October 4. The Berlin store, sprawling across 9,000 square meters on Friedrichstrasse, employs 190 individuals who now face the uncertainty of losing their jobs. Nicolas Houzé, CEO of Galeries Lafayette, expressed gratitude for the opportunity to bring the best of French art and lifestyle to German customers over the past 30 years. Nevertheless, considering Berlin’s changing landscape, the decision to close the store was deemed necessary.
Amidst the closure, German media reports have indicated that the Berlin authorities are contemplating acquiring the building to establish the city’s central library. This potential new use for the space showcases the city’s commitment to repurposing the location following Galeries Lafayette’s departure.
Looking forward, Galeries Lafayette will continue its operations outside of France with only one remaining store in Europe, situated in Luxembourg. However, the group’s expansion endeavors are now concentrated in Asia, where they already have a presence in the Middle East and several countries including China and Indonesia. The company plans to open stores in Macau, Chongqing, Mumbai, and New Delhi in the coming years.
As Galeries Lafayette bids farewell to its Berlin store, it remains devoted to supporting its employees during this transitional period. As a responsible employer, the group will take the necessary steps to provide assistance and guidance to all individuals affected by the closure.
Useful links:
– Galeries Lafayette Official Website
– Official Website of the City of Berlin
