Galeries Lafayette helped by hypermarket sales
Paris department store hit by consumer slowdown
French retailer Galeries Lafayette relied on its hypermarket interets to boost profits during 2003, as slow consumer demand hit sales at its landmark Paris department store.
The group saw a 37 per cent rise in 2003 profit, to €115m. Sales were €5.5bn, up about one per cent compared to 2002.
Galeries Lafayette operates a chain of upmarket fashion and department stores, including the Paris flagship, as well as hypermarkets. It also has a 2.19 per cent stake in French grocery retail giant Casino.
While its grocery offer saw steady sales growth, there was less consumer demand during 2003 for the group’s core fashion and homeware ranges as French comsumers took a cautious approach. Paris was further hit by the globa downturn in travel and tourism.
A staement said: “Despite an uncertain outlook, this progress in results, which should continue in 2004, gives a good indication for the group’s capacity to improve its profitability and strengthen the means to meet its ambitions.”
