Galeries Lafayette to close stores in Marseille

What: Galeries Lafayette announces the closure of its two Marseille stores by the end of 2025, citing recurring losses and misalignment with the brand's luxury positioning in both the historic Bourse location and the newer Prado site.

Why it is important: The closures demonstrate how traditional department stores are strategically consolidating their networks, prioritising locations that match their luxury positioning while divesting from underperforming sites, even in major French cities.

The group's decision targets two significant locations in Marseille: the 13,000-square-meter Bourse store, present since 1977, and the 9,400-square-meter Prado location, opened in 2018. The Bourse site's closure is attributed to evolving local retail dynamics that now favor more accessible products, misaligning with Galeries Lafayette's premium positioning. The Prado location, despite its strategic placement near the Vélodrome stadium, struggled due to prolonged retail vacancies in the center and operational challenges. CEO Nicolas Houzé describes this as a "difficult but carefully considered decision," noting unsuccessful attempts to find alternative premium locations in Marseille. 

IADS Notes: The closure of Galeries Lafayette's Marseille stores aligns with the group's broader network optimisation strategy. Following the sale of BHV Marais and Eataly, closure of Bazarchic, and its €400 million investment plan, this decision reflects the company's focus on profitable locations while maintaining expansion in strategic markets. The move comes as the group pursues growth through its remaining 57 stores, including 19 owned and 38 franchised locations.