Galeries Lafayette forms joint venture with China’s Hopson Group

French department store group Galeries Lafayette has established a joint venture with China’s real estate firm Hopson Group as it looks to bolster its plans to scale in the region.

Through the strategic partnership, Galeries Lafayette is hoping to build up its roll out in China, stepping up the pace of openings to reach 10 stores by 2025, while also strengthening its digital presence.

In 2023, the group is set to open flagship stores in Beijing and Shanghai, as well as three new stores in Shenzhen, Chongqing and Macau.

With the deal, Galeries Lafayette is looking to leverage Hopson Group’s property portfolio, its knowledge of the Chinese market and its expertise as an operator of high-end urban complexes and shopping centres.

Meanwhile, Hopson Group hopes to tie in with Galeries Lafayette’s identity and luxury expertise in order to carry out multi-brand concepts that promote a French lifestyle and selective environments.

Both companies will hold equal shares and voting rights in the joint venture, which will come into effect over the next few weeks.

In a release, Nicolas Houzé, CEO of Galeries Lafayette and BHV Marais, noted that the company already has a strong base in China, with its store in Beijing set to celebrate its 10-year anniversary this year.

Houzé continued: “This partnership illustrates our shared ambition of accelerating the roll-out of our brand and creating a major retailer capable of responding to generational trends and the strong potential for growth in domestic consumption between now and 2030.

“We share the same views as regards the added-value fashion offerings and experiences we want to share with our customers, and firmly believe that we can collaboratively develop a surprising and innovative store model showcasing the best France has to offer.”