Galeries Lafayette Group to close Bazarchic operations

What: Galeries Lafayette Group announces plans to discontinue Bazarchic operations, its event sales platform with 2 million active members, citing significant losses and challenges in achieving critical market scale.

Why it is important: The move demonstrates how retail groups are streamlining their digital portfolios to focus on core operations, particularly as the fashion market faces inflationary pressures and changing consumer behaviors.

Galeries Lafayette Group has initiated an information-consultation process with employee representatives regarding the potential closure of Bazarchic, its flash sales platform acquired in 2016. The decision affects approximately 100 employees and comes after unsuccessful attempts to find a buyer in recent months.

Despite having 2 million active members and offering products ranging from fashion to home goods, wine, and cosmetics, Bazarchic has struggled to achieve the critical mass needed to expand its market share in event sales. The platform faces intense competition from established players like Veepee and Showroomprivé, while also contending with growing pressure from second-hand fashion platforms such as Vinted and Vestiaire Collective. Three years ago, Bazarchic underwent rebranding and logistics restructuring, targeting EUR 100 million in revenue by 2025, up from EUR 80 million in 2020.

IADS Notes: While the group pursues a EUR 400 million investment plan for modernization and digital transformation, Bazarchic has struggled to compete with larger players in the flash sales market. This move follows other strategic decisions like the sale of BHV Marais and Eataly franchise, indicating the group's focus on core operations under Nicolas Houzé's leadership.