Major French luxury department store Galeries Lafayette closed its first China flagship branch on Wednesday, over a decade after opening, pointing to sluggish domestic consumption and shifting 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 Galeries Lafayette operations in Beijing, which has been open for 13 years, AFP journalists saw.
The six-floor emporium three kilometres (1.8 miles) west of the Forbidden City was being emptied of handbags, clothing, shoes and children‘s toys before it locked up indefinitely.
“Don’t be sad, this is not goodbye forever,” the store said in a social media post this month announcing its Beijing closure.
“Beijing, until we meet again!”
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When the French chain opened its doors in mainland China in 2013, it was at the beginning of a huge growth period for the Chinese luxury market.
China’s burgeoning middle class became a significant part of the global luxury consumer base as brands that were once only aspirational were now within reach 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 metre Beijing location this month.
“Consumer expectations regarding the traditional department store model have evolved significantly. Modern shoppers are increasingly prioritising greater convenience, elevated service, more meaningful experiences, and a greater sense of wellbeing,” it said.
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Its Beijing branch was too large, while the Covid pandemic, a slump in domestic consumption spurred 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 steps away from the Beijing flagship store, said she was surprised to learn the mall she visited occasionally during lunch breaks would shut down.
“I noticed there weren’t many customers, but I never imagined that one day it would suddenly close down and then leave,” the 40-year-old said a day before its curtain call.
“After it opened, at the time, it was also a landmark building, and us young people would all come over to shop,” she said.
“We can only look back on memories.”
(FRANCE 24 with AFP)