In a significant development, the Galeries Lafayette Group has completed the sale of the BHV Marais department store in Paris and the BHV branch in the Parly 2 shopping mall. The new owner is Société des Grands Magasins (SGM), a prominent commercial real estate developer based in Lyon, France. This transaction follows SGM’s acquisition of seven Galeries Lafayette branches outside Paris in 2021, positioning them as the master franchisor.
Employing a total of 1,300 individuals, with approximately 100 at the Parly 2 location, these two stores hold historical and retail significance. The BHV Marais, spanning 38,000 square meters and a fixture opposite Paris’s Hôtel de Ville for the past 160 years, has undergone strategic shifts in recent years, emphasizing homeware and interior decoration products. The acquisition also includes shops on rue des Archives and the building housing an Eataly branch, still operated by Galeries Lafayette.
Galeries Lafayette expressed confidence in SGM, stating, «Having been the owner of the [BHV stores] for 30 years, the Galeries Lafayette group is convinced that SGM will be the most committed and innovative operator to continue tapping into the potential of these two department stores, with the help of their staff.» The group is redirecting its focus and investments towards its core business, the Galeries Lafayette branches in major cities worldwide.
SGM, founded by the Merlin family in 2018, specializes in revitalizing city-centre shopping malls. Notably, SGM introduces budget retailers like Action, Normal, and Primark, along with leisure operators. Their portfolio currently boasts 11 malls, including the recent acquisition of the Saint-Jacques shopping centre in Metz.
Frédéric Merlin, President of the SGM group, expressed dedication to preserving BHV’s DNA and values while expanding these prestigious stores. He emphasized the goal of providing a high-quality shopping experience and contributing to the vibrant lifestyle of the heart of Paris.
In May, SGM secured a loan and received competition authority approval for the BHV acquisition. BHV Marais, a symbol of Parisian retail, was once the flagship of a substantial BHV brand chain, with around 30 branches across France. Over the years, the retail landscape evolved, leading to the closure of many branches in the 1990-2000s, with the Lyon branches closing in 2019. The finalization of this sale marks a new chapter for BHV under the innovative stewardship of SGM. Explore the exciting transformation and future plans for BHV Marais and Parly 2 under SGM’s visionary leadership.