The threat of disappearing after over 160 years of existence, the Bazar de l’Hôtel de Ville (BHV) has been definitively taken over by the Société des Grands Magasins (SGM). The negotiations have been going on since February.
In exclusive negotiations since the beginning of the year with the Lyonnais-origin real estate company SGM (Société des Grands Magasins), the Galeries Lafayette group announced on Friday that it has definitively transferred the BHV Marais (Bazar de l’Hôtel de Ville) to the latter, managed by a thirty-something brother and sister, Frédéric and Maryline Merlin.
“The Parly 2 store (located in the Westfield shopping center in Chesnay-Rocquencourt in the Yvelines) is also involved in this operation,” according to the Galeries Lafayette. Although both parties are silent on the amount of the transaction, it was estimated at several hundred million euros earlier this year, for an establishment generating around 300 million euros in turnover.
In loss for a decade, the emblematic department store in the Marais district has suffered from e-commerce competition in recent years, as well as, according to management, traffic restrictions on rue de Rivoli that significantly complicate access by car. By cutting off the flow of tourists and locals, the pandemic has further weakened the economic performance of one of the capital’s flagship addresses.
The buyers are familiar with Galeries Lafayette, eager to refocus on their most profitable stores and having already sold them seven of their eponymous stores in the regions (Angers, Dijon, Grenoble, Reims, Le Mans, Orléans, Limoges) at the end of 2021. SGM also owns around ten shopping centers, mainly in the north and east of France.
