Iconic chain closes second department store this year after 132 years in business

As the fashion industry grapples with slowing consumer demand, rising operational costs and shifting shopping habits, department stores are shutting worldwide. Even the historic brands aren’t safe, as one luxury brand closed a branch in a major location after 132 years in business.

The family-owned company manages 310 stores globally and welcomes more than 60 million visitors annually. It specialises in “city-centre fashion retailing” and claims to promote the French “Art of Living” through its brands.

Galeries Lafayette Group sadly closed its Beijing branch in China on May 27, 2026. This marks the end of the retailer’s 13-year physical presence in the city.

It also comes after the closure of its Macau branch in February 2026. The Paris-based luxury retailer additionally operates Galeries Lafayette, La Redoute, Louis Pion, Galeries Lafayette-Royal Quartz Paris and Mauboussin. According to its website, the Group supports the brands in their asset, digital and creative transformation through Citynove and Lafayette Anticipations.

While the luxury market experienced strong growth in the mid-2010’s due to the rise of the middle class and the COVID-19 pandemic, China’s property crisis proved to be the turning point, abruptly curbing China’s domestic consumption and forcing the sector to adapt to new economic realities.

Nevertheless, company executives emphasised that the move does not represent a complete exit from the Chinese market. CEO Arthur Lemoine and Deputy CEO Alexandre Liot said the retailer will continue operating its stores in Shanghai and Shenzhen.

They said: “We often assume that familiar landmarks will always be there, yet we forget that encounters tend to be temporary, and the moment to say goodbye can quietly arrive,” Galeries Lafayette wrote in a recent WeChat post earlier this month.

“Don’t be sad — this is not a farewell forever. Trees grow, the seasons turn, and life flourishes. We look forward to a better reunion with you.”

According to the company’s store locator, its remaining mainland China stores are significantly smaller than its Beijing flagship, reflecting a broader shift toward leaner and more operationally efficient retail formats.

Other recent shutdowns include: