Galeries Lafayette to open more stores in China

French companies have announced new development projects in China, as French President Emmanuel Macron is visiting China at the invitation of Chinese President Xi Jinping.

Galeries Lafayette formed a joint venture with Hopson Commercial Group on Thursday to bring the Galeries Lafayette brand in China to a new level, stepping up the pace of openings to reach 10 stores by 2025, and strengthening its digital presence as part of an omnichannel approach.

In addition to Beijing and Shanghai flagship stores, it will open three new stores in Shenzhen, Chongqing and Macau within the year.

The cooperation agreement was signed in Beijing on Thursday, the day after Nicolas Houzé, chief executive officer of Galeries Lafayette and BHV Marais, arrived in China together with Macron.

The strategic partnership will come into effect over the next few weeks. Galeries Lafayette and Hopson will hold equal shares and voting rights in the joint venture.

"Our group has always enjoyed close and unique ties with China," said Houzé. "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 the Hopson Commercial Group."

"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."

Sylvia Chu, board chairman of Hopson Development Holdings Limited, said it will work with Galeries Lafayette to create a future high-end department store business with high-end brand resources, a first-class buyer team, and an advanced supply chain management system, ensuring consumers enjoy the original French shopping experience, the innovative Oriental culture and unique local services in the new stores.

Meanwhile, European plane-maker Airbus said on Thursday that it will double its production capacity in China, as it seeks to bolster its footprint in a crucial market.

"It makes a lot of sense for us to serve the local Chinese market with Chinese airlines, as it continues to grow, and probably some other customers in the region as well," said Guillaume Faury, who is accompanying Macron in his state visit to China.

Faury later signed a framework agreement to build a second final assembly line at its factory in Tianjin, northeast China, for Airbus's hugely popular A320 family of medium-haul jets, at a ceremony attended by Macron and Chinese President Xi Jinping.

The new assembly line will begin operation in late 2025.