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The Galeries Lafayette department store chain saw a 14 percent boost in sales from Middle Eastern clients in March, as overall sales for the quarter remained flat, suggesting the war has not weighed on business to date.
“At this stage, we have not seen any effect from the crisis in the Middle East,” Galeries Lafayette CEO Arthur Lemoine told journalists, while cautioning that the group remained “vigilant and prudent” when it comes to prospects for the coming months.
Business from Asian clients has slowed, with executives flagging concern over the drop in air traffic transiting through the Middle East as well as rising costs for airplane tickets. Sales from US shoppers, meanwhile, continue to remain strong and business with local French clientele continues to grow, they said.
The French department store chain, which relies heavily on tourism, plans to invest €260 million in its brand, client services and personnel through 2030. It aims to turn its historic Boulevard Haussmann flagship, which accounts for two-thirds of annual sales, into the “biggest” and “best” department store in the world.
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While precise financials on leading department store chains is scarce, as many are privately owned, Galeries Lafayette estimates its Hausmann location is already in the world’s top three luxury retail destinations by sales, alongside London’s Harrods and Isetan in Tokyo. Its recently refurbished stained-glass cupola is a strong draw for tourists to Paris, attracting 35 million visitors a year — well over double the traffic to sites like the Louvre Museum and the Eiffel Tower.
Since the pandemic put a dent in traffic from Chinese visitors — which accounted for 22 percent of sales in 2025, down from a third in 2019 — the group has invested in refurbishing its network of stores, expanding its beauty and shoe departments and training staff to improve the shopping experience.
“The idea is, in a horizon of three to four years, that this store, this brand, becomes the reference in terms of service, welcoming and client experience,” said deputy CEO Alexandre Liot.
The retailer recorded €3.1 billion in sales last year, of which its Haussmann flagship generated 2 billion, up 4 percent year-on-year, surpassing its 2019 peak.
Internationally, the department store chain has put expansion plans in the Middle East on hold while revisiting its presence in China, where it has 3 stores. All options are on the table for its Chinese stores, given a structural change in shopping habits in the country — with fewer luxury purchases and more interest in local brands — but the company plans to maintain a presence there. India, meanwhile, where it has one store in Mumbai, is a country with strong growth potential, Lemoine said.
In Paris, Céline Dion’s first concerts in over 6 years, kicking off in September, will likely lift sales, Lemoine said. “When Taylor Swift came to Lyon for two days [in 2024], there was a real impact at our Boulevard Haussmann store in Paris. So the presence of Céline Dion here in the capital for more than a month should have a significant positive impact. It’s definitely beneficial.”
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