French luxury department Galeries Lafayette has formed a joint venture with Hopson Group, in a bid to scale up its ambitions for the Chinese market.
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The alliance with Hopson Group, a major listed property firm established in south-eastern China, will see Galeries Lafayette rollout across China, stepping up the pace of openings to reach 10 stores by 2025, and strengthening its digital presence as part of an omnichannel approach, according to a press release.
In addition to Beijing and Shanghai flagship stores, Galeries Lafayette will open three new stores – in Shenzhen, Chongqing and Macau – in 2023.
The strategic partnership will come into effect over the next few weeks, said the French retailer, adding Galeries Lafayette and Hopson Group will hold 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 10-year anniversary and the country gradually reopens 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 Group,” said Nicolas Houzé, chief executive Officer of Galeries Lafayette and BHV Marais.
“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.”
Galeries Lafayette first opened its doors in China in 2013, and it now has two locations in Shanghai and one in Beijing. Last December, the company negotiated a lease to open in Shenzhen’s UpperHills, an up-and-coming neighbourhood, which is now open.