Galeries Lafayette

French department store. It was established in Paris in 1912 by Alphonse Khan and Théophile Bader who, after a little while, acquired his partner’s shares. It owed its immediate success to fashion and to clothing that was affordable by everyone. The corporate strategy and the advertising campaigns would always focus on this idea: chic at affordable prices. Ever since 1935, with branches that had meanwhile been opened all over France, the department store has emphasized the idea that it is a fashion emporium. In 1969, it opened a new location dedicated to men’s clothing. Starting in 1980, the Festival de la Mode, organized by Galeries Lafayette, became an important event during fashion week. In 1989, the Lafayette Collection brand was created, followed by the Avant-Première, Biefing, and Jodhpur lines. In the 1990s, the Galeries Lafayette group (which includes Monoprix and Nouvelles Galeries) arrived in New York and Berlin. The figures for 1992 already give an idea of the turnover: the group employs 35,000 people and has 115 store chains, of which 392 are privately owned and 115 are franchises. In 1995, Galeries Lafayette opened an Internet Bistrot, hosting society events in music, art, and fashion.
Galeries Lafayette sues Marks & Spencer for damages of €60 million. In 2001, the British company had decided to abandon the French market, closing 18 stores and dismissing 1,500 people. Galeries Lafayette took over the points-of-sales, offering the personnel either a job or a severance payment, as negotiated by Alan Julliet, who at the time was president of M&S France. According to Galeries Lafayette, the final figures set by Julliet were much higher than those agreed at the outset. The severance pay, between €15,000 and €23,000, was accepted by almost 90% of the workers, at serious cost to Galeries Lafayette. A spokesman for M&S declared: “We are certain that we complied with the terms of the agreement; that is why we are contesting this legal action.” For his part, Philippe Lemoine, the co-president of Galeries Lafayette, expressed a desire to reach a solution before arriving in court.