The French department store chain Galeries Lafayette is closing its branch in Berlin. The rental agreement for the house will not be renewed. There is already a possible successor.
The closure of the French department store Galeries Lafayette in Berlin has been discussed for a long time, now it is official: after around 27 years, the closure of the Berlin branch has been confirmed.
The luxury department store is scheduled to close at the end of 2024. The department store announced today that the rental agreement for the branch on Friedrichstrasse in Berlin with the property owner Tishman Speyer will not be extended. The employee representatives were informed about the step.
Changed Consumption habits in Germany
Around 190 employees are affected. The announcement to close the branch is “a consequence of changing consumer habits in Germany and the significant changes in the city’s retail market,” the company wrote in the statement.
Galeries Lafayette in Berlin offers lots of luxury items on 8,000 square meters and five floors. The location in Berlin is the only one in Germany. It is one of the few branches of the French chain outside of its own country. In addition to France, the department store also has branches in Dubai, Casablanca, Jakarta and Luxembourg.
In 1996, the department store moved to the building on Friedrichstrasse designed by the French architect Jean Nouvel. In addition to fashion and jewelry, many visitors are particularly drawn to the lower restaurant and gourmet area.
Plans for central and State library
The plans do not come as a surprise. It has been known for a long time that the rental agreement expires at the end of next year. Galeries Lafayette had repeatedly emphasized in recent weeks that it was negotiating an extension of the contract with the owner. However, the owner, the US real estate developer Tishman Speyer, had always emphasized that he was not interested in a solution for the department store beyond 2024.
Now the department store has also given up hope of reaching an agreement. There are already advanced plans for subsequent use: Berlin’s Senator for Culture Joe Chialo (CDU) would like to house the central and state libraries in the building.