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Galeries Lafayette Haussmann enjoys rapid growth, amid store revamp and tourism boom

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Business at Galeries Lafayette’s famed Boulevard Haussmann flagship is booming this year, amid a huge flood of tourists into the nation’s capital, and a significantly refreshed retail offer.

Outside the Galeries Lafayette store in Paris – Courtesy

In the first half of 2025, the flagship achieved double-digit sales growth, outperforming the estimated 9% increase in tourists visiting France during the same period.

Annually, some 37 million people visit the handsome Art Nouveau store, Europe’s largest – 60% of them non-French, a remarkable figure when one considers that 89 million people visited France in 2024. The recent increase in traffic and business has also been driven by a substantial revamp of key floors in this luxury bazaar.

“We have worked hard on improving the customer experience and offer and consumers have reacted very positively,” stressed Guillaume Houzé, board member and director of image, over a summer lunch Thursday.

Guillaume Houzé
Guillaume Houzé – Courtesy

Specifically, the store has expanded its space for prominent French runway brands such as Jacquemus, Lemaire and AMI, particularly in their menswear department, and has focused even more attention on their major league brands on the ground floor.

Not surprisingly, the store’s top-selling brands are Louis Vuitton and Chanel. In an ongoing revamp of the huge store, private salons have been added to key brands’ shop-in-shops at Haussmann.

“The goal is to make the customer experience comparable to a Vuitton flagship. Right now, we believe that Vuitton’s store in Galeries Lafayette Haussmann is among the top five stores of Vuitton worldwide,” noted Houzé, great-great-grandson of the store’s founder Théophile Bader, who opened the debut store in 1894.

A sneaker wall inside Galeries Lafayette
A sneaker wall inside Galeries Lafayette – Courtesy

Under buying director and board member Arthur Lemoine, the store has also expanded the presence of leading international labels, recently opening a striking Phoebe Philo boutique, adding Bottega Veneta and creating a 110-square-meter store for Paris’ favorite new American label, The Row. It has also added the only French shop-in-shop of LVMH marque Patou, which will stage its next show this Sunday in Paris. Meanwhile, the boutique of Courrèges – thanks to the direction of the brilliant Franco-Belgian designer Nicolas Di Felice – has expanded from 20 square meters to 110 square meters.

“We want to nourish that difference in our offer, with more directional fashion, compared to other places in Paris,” explained Lemoine at a suitably Lucullan lunch in Galeries Lafayette’s VIP salon.

Arthur Lemoine
Arthur Lemoine – Courtesy

Courgette flowers stuffed in crunchy vegetables served on Andalusian gazpacho, followed by cumin-inflected grilled sea bream, washed down by a rare white Bordeaux, Smith-Haute-Lafitte. The fine menu complements the sophisticated mode available in this giant retailing complex.

Familiar fixtures at major runway shows, the duo of Houzé and Lemoine are very excited about the recent debut show of Jonathan Anderson for Dior, where they sat front row.

“Personally, I thought it was formidable! We already have three Dior men’s spaces, including for shoes and fashion. And cannot wait to get Jonathan’s ideas for Dior in here in early January,” enthused Lemoine.

A tour of the main building, or buildings – there are four large, interconnected spaces at Galeries Lafayette Haussmann, including a beautiful Art Nouveau structure topped by a glass cupola – underlined how chock-a-block they are this summer. After a couple of years where the space slowly emerged from the Covid pandemic, it is now packed, with lines outside hot brands’ spaces.

The glass cupola inside Galeries Lafayette
The glass cupola inside Galeries Lafayette – Caroline Richard / Galeries Lafayette

“Do you know, the Christmas before Saturday, over 300,000 visited Galeries Lafayette Haussmann, which is pretty special,” marveled Lemoine, who is also gradually renewing its beauty, scent and wellness offer, even if Haussmann already has the largest beauty space in Europe.

The growing traffic means that the famed flagship alone will break €2 billion in turnover in 2025, impressive numbers for a store with a total retail space of 70,000 square meters.

Breaking down revenue by key categories, women’s ready-to-wear and men’s ready-to-wear each count for 20% of sales; leather goods and bags for 20%; watches for 10%; beauty for 5%; while gifting, books, home, tabletop and restaurants make up the final 25%.

Internationally, this family-owned French institution is not resting on its laurels. Galeries Lafayette already has six large department store flagships outside of France, spreading from the Gulf to Jakarta to Shanghai.

The beauty section inside Galeries Lafayette
The beauty section inside Galeries Lafayette – Courtesy

Next up, a debut store in Mumbai, where work has already begun inside an architecturally distinguished Victoria Gothic building near the central city zone of the Maidans.

“Most of the property like that is owned by the municipality, making alterations very complicated. But our building is privately owned, so we can make the sort of changes to create an exciting store,” enthused Houzé.

Galeries Lafayette Mumbai, with 7,000 square meters of shopping space, will open at the end of 2026. One suspects Théophile Bader, whose bust in the VIP salon looks out at the rooftops of Paris to the July sun shining on Sacré-Cœur on Montmartre, would have been pleased.

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Jewelry giant Pandora eyes China revamp after 80% revenue drop

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Reuters

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July 11, 2025

Danish jewelry maker Pandora is exploring ways to restructure its business in China, according to two people familiar with the matter, following years of declining sales both online and in stores.

Pandora considers licensing assets in China amid market slump. – Reuters

The world’s largest jeweler by volume is in talks with China-based funds and e-commerce partners to potentially license its brand and assets — including inventory — for a five-year term, one of the sources said.

Like many multinational consumer brands operating in the world’s second-largest economy after the United States, Pandora has been hit hard by post-pandemic consumer malaise, compounded by an ongoing property crisis affecting broader economic sentiment.

The brand is also facing fierce competition from local, digitally savvy brands in China’s crowded e-commerce space, along with shifting consumer preferences toward gold and higher-value jewelry.

In a statement to Reuters, Pandora acknowledged the need to reposition its brand in China and confirmed that a turnaround is in progress, noting that “it will take time.” The company did not comment on specific restructuring discussions.

“China is the biggest jewelry market in the world, and we remain fully committed to the business there,” Pandora said.

According to exchange filings, Pandora’s China revenue dropped nearly 80% to 416 million Danish crowns ($65.10 million) in 2024, down from 1.97 billion crowns in 2019. Over the same period, China’s contribution to the company’s global revenue fell from 11% to about 1%.

Since 2022, Pandora’s China unit has had three managing directors. The current managing director, Thomas Knudsen, took over in January. Shortly afterward, the company announced plans to close 50 stores in China this year.

Finding a licensee or stakeholder may be “difficult” given Pandora’s declining performance in China and broader consumer headwinds, said Jonathan Yan, a principal at consulting firm Roland Berger in Shanghai.

“I don’t think financial investors are going to be interested in this asset,” Yan said. However, e-commerce firms seeking higher-margin brand ownership “may be interested.”

A precedent for such a deal could be Baozun’s acquisition of Gap’s China business in 2022. The Chinese e-commerce service provider bought the U.S. apparel retailer’s operations for $40 million to $50 million.

Reuters was unable to determine the current valuation for Pandora’s potential China deal.

Sales from Pandora’s e-commerce business in China have declined more sharply than its physical retail operations, according to a person with knowledge of the matter who was not authorized to speak publicly.

Yan added that a takeover by an operator with strong e-commerce expertise could be a step in the right direction, but any turnaround would require significant investment.

“They will need to burn money and have a very innovative approach — and even then, it won’t be easy,” he said.

($1 = 6.3902 Danish crowns)

© Thomson Reuters 2025 All rights reserved.



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Milano Unica trade show records 10% rise in international visitors

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Translated by

Nicola Mira

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July 11, 2025

The Milano Unica textiles trade show has recorded a 10% increase in international visitors. The show’s 41st edition held on July 8-10 in Milan saw rising attendance figures for visitors from most of the markets where Italy exports its textiles, except for visitors from China, down 3.5%, and Korea, down 14%. Visitor numbers from other countries significantly increased, for example from the Netherlands (up 46%), Germany (up 33%), the UK (up 23%), the US (up 16%), France (up 14%) and Japan (up 9.5%).

Milano Unica

The share of international visitors at the show, which presented the Fall/Winter 2026-27 collections of premium fabrics and accessories for men, women and children, was 45% of the total. The number of exhibitors too was up from last edition, to 735, driven by an 8.7% increase in European exhibitors. 

“Almost all the main markets for Italian exports of fabrics and accessories, both in the EU and outside the EU, have responded positively. While the results, which I hope will be positive, will be seen in 2026, the satisfactory attendance figures of foreign buyers, a fact confirmed by the extensive positive feedback I gathered among fellow exhibitors, makes us look to the future with moderate optimism,” said Simone Canclini, president of Milano Unica.

“The exceptional results we have achieved in this edition of the show are the fruit of our team work, (..) and they confirm the strategic role Milano Unica plays in supporting [Italy’s] textile and fashion industries, evident also in the partnership with the MarediModa show,” said Massimo Mosiello, managing director of Milano Unica.

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Zalando takes majority stake in About You, targets 8% EBIT margin

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Translated by

Nazia BIBI KEENOO

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July 11, 2025

Zalando and About You, two of Europe’s leading online fashion platforms, have officially merged in a strategic move to unite their B2C and B2B strengths. While combining forces to accelerate growth across the region, both companies will retain distinct brand identities. Zalando will unveil the first outlook for the newly formed group on August 6, alongside its second-quarter earnings for fiscal year 2025.

Zalando will unveil its first outlook for the newly merged group on 6 August, alongside its Q2 2025 financial results. – Zalando

The European Commission approved the deal on July 1, including Zalando’s voluntary public takeover offer to About You shareholders. Zalando has now acquired 91.45% of the former Otto Group subsidiary’s share capital.

As a next step, Zalando intends to initiate a squeeze-out of remaining minority shareholders, offering them fair cash compensation. The squeeze-out will occur through a merger between About You and a wholly owned Zalando subsidiary.
Since announcing the planned merger on December 11, 2024, both companies say they’ve been preparing for this next phase—developing concrete plans to ensure a smooth transition post-merger.

“Zalando and About You both started as local startups and have grown into European success stories,” said Robert Gentz, Zalando’s co-CEO and co-founder. “We share a deep focus on quality, innovation, and staying close to our customers. Together, we’ll be a powerhouse shaping the future of fashion and lifestyle e-commerce in Europe.”

On the B2C side, the group plans to deliver differentiated and engaging shopping experiences for both customers and brands. In B2B, the integration of About You’s payment solution Scayle complements Zalando’s vision of building a full-scale operating system for the fashion and lifestyle sector.

“By combining our complementary logistics and software tools—Zeos, Tradebyte, and Scayle—we’re creating an even more robust e-commerce operating system,” the companies stated. “This will allow brands and retailers to efficiently manage multichannel businesses across Europe and beyond.”

“At the heart of this partnership is our shared mission to redefine how people shop for fashion and lifestyle products—and to bring real value to our customers and partners,” said Tarek Müller, co-CEO and co-founder of About You. Gentz added, “This strategic transaction unlocks major collaborative opportunities while allowing About You to retain its identity and entrepreneurial energy.”

Back in December 2024, Zalando reaffirmed its mid-term outlook for the combined group. By 2028, the company expects compound annual growth of 5 to 10 percent in both gross merchandise volume (GMV) and revenue.

The merged entity is also targeting an adjusted EBIT margin of 6 to 8 percent—representing a significant boost in absolute earnings.
Together, the companies aim to capture a larger share of Europe’s €450 billion fashion and lifestyle market.

Zalando will release its first official outlook for the combined business when it reports second-quarter results on August 6.

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