Department stores Galeries Lafayette are teaming up with the Hopson Group, a Hong Kong real estate company, to continue their expansion into the Chinese market.
By forming a joint venture with the Hopson Group, Galeries Lafayette aims to strengthen its digital presence and, most importantly, accelerate the pace of new store openings. Ten are planned by 2025. There are currently flagship stores in Beijing and Shanghai. In 2023, three more cities will be equipped with Galeries Lafayette stores: Shenzhen, Chongqing and Macau.
The partnership between Galeries Lafayette and Hopson Group will come into effect in the next few weeks, according to the press release published on Thursday. It also states that “Galeries Lafayette and the Hopson Group will each hold a 50 percent interest in the issued shares and voting rights of the joint venture.”
Create a “major player in commerce”.
Nicolas Houzé, general director of Galeries Lafayette and BHV Marais, recalls that it has been ten years since the group first showed a presence in Beijing. Now the company is using the gradual reopening of China’s borders – following lockdown due to the Covid-19 epidemic – to launch a new phase of development in China.
The executive said in a press release, “This partnership demonstrates our collective commitment to accelerate our brand adoption and create a major retail player capable of responding to generational shifts and the highly potential growth of domestic consumption through 2030.”
Nicolas Houzé goes on to explain that the partnership with Hopson will also enable the development of “a surprising and innovative store model that offers the best of France”. The joint venture is expected to result in high quality stores and an advanced supply chain management system.
Lucas Loh, Co-Chairman of Hopson Development Holdings Limited, President of Hopson Commercial Group and Hopson Real Estate, highlighted the benefits of working together on the new Moho Mall project being developed by Hopson Commercial, a subsidiary of Hopson Group. It is a shopping mall and office building that opened in February 2023 in Shanghai. “The collaboration with Galeries Lafayette will strengthen the image of our brand in new consumer areas,” said Lucas Loh.
In February 2023, Galeries Lafayette encountered difficulties in the French market. About twenty of their department stores, controlled by businessman Michel Ohayon, have been placed under protective supervision by the Commercial Court.
This translated post previously appeared on FashionUnited.fr.