Galeries Lafayette inks deal with Hopson Commercial Group

French department store chain Galeries Lafayette and China's Hopson Commercial Group inked a joint venture and strategic partnership on Thursday.

According to the agreement, both sides will collaborate to open three new Galeries Lafayette stores in Shenzhen, Chongqing and Macao in 2023, and another five by 2025. They will also strengthen the digital presence of the stores using an omnichannel approach.

Galeries Lafayette currently has two flagship stores in Beijing and Shanghai.

The strategic partnership will take effect in the coming weeks, with Galeries Lafayette and Hopson Commercial Group holding equal shares and voting rights in the joint venture.

"Our Group has always enjoyed close and unique ties with China. As our first store in Beijing celebrates its 10th anniversary and the country gradually reopens its doors to the world after three challenging years, we are delighted to initiate a new phase in our Chinese growth by forging a strategic partnership with Hopson Commercial Group," said Nicolas Houzé, chief executive officer of Galeries Lafayette and BHV Marais.

Houzé added that the partnership is aimed at accelerating the expansion of the Galeries Lafayette brand and creating a major retailer capable of responding to generational trends.

According to Sylvia Chu, the board chairman of Hopson Development Holdings Ltd, both parties will give full play to their respective advantages, promote resource integration, and be committed to creating a high-end department store business with high-end brand resources, a first-class buyer team and an advanced supply chain management system.

"Hopson Commercial will also leverage its long-term business value, deepen the potential in the new consumer business field and build a high-end retail platform to create a new value growth point in the business development mode of the entire chain," said Chu.