French luxury department store Galeries Lafayette closed its first branch in China on Wednesday, more than a decade after opening, citing sluggish domestic consumption and changing spending habits.
A steady stream of shoppers browsed for last-minute deals as employees packed away unsold merchandise and mannequins on the penultimate day of operations of Beijing’s Galeries Lafayette, which has been open for 13 years, AFP reporters saw.
The six-storey emporium three kilometers (1.8 miles) west of the Forbidden City was being emptied of bags, clothes, shoes and children’s toys before closing indefinitely.
“Don’t be sad, this isn’t goodbye forever,” the store said in a social media post this month announcing its closure in Beijing.
“Beijing, until we meet again!”
When the French chain opened its doors in mainland China in 2013, it was at the start of a major growth period for the Chinese luxury market.
China’s growing middle class became an important part of the global luxury consumer base as brands that were once only aspirational were now accessible in the world’s second largest economy.
But since the Covid-19 pandemic and property market woes dampened domestic consumption in China, the luxury sector has struggled to adapt.
“In response to … shifting market dynamics, Galeries Lafayette will refresh its business formats moving forward,” the chain said in a press release announcing the closure of its 48,000-square-foot Beijing location this month.
“Consumer expectations of the traditional department store model have evolved significantly. Modern shoppers are increasingly prioritizing greater convenience, elevated service, more meaningful experiences and a greater sense of well-being,” he said.
Its branch in Beijing was too big, while the Covid pandemic, a slump in domestic consumption fueled by a property crisis and a slowdown in the luxury sector added to its plight, the chain told AFP separately.
The chain is still operating its two other locations in mainland China – in Shanghai, which opened in 2018, and in southern China’s Shenzhen, which opened in 2023.
Finance worker Qian Linlin, whose office is a few steps away from Beijing’s flagship store, said she was surprised to learn that the mall she occasionally visited on her lunch break would be closing.
“I noticed that there weren’t many customers, but I never imagined that one day it would suddenly close and then leave,” the 40-year-old said the day before her call.
“After it opened, at that time, it was also a historic building and we young people would all go there to shop,” she said.
“We can only go back to memories.”
