Inner cities - Galeries Lafayette before closing - What's next?
Over the shelves and vitrines, the logos of luxury brands, whose products once stood here, gleam: Ralph Lauren, Chanel, Lacoste. But one cannot buy them here anymore. A few days before the French department store Galeries Lafayette on Friedrichstraße closes, the largest part of the floor space is already empty.
A similar scene is present in the basement, the fine food and grocery department. The expensive champagnes and wines, the fragrant tea varieties: Almost all gone. Only in the fish department is the display still well-stocked. At the restaurant tables, guests are enjoying the last Dorade dishes served here.
Tourist attraction on Friedrichstraße
Galeries Lafayette has been almost 29 years old in its imposing glass building when it closes its doors for the last time on July 31. Then it's over. While it may not be considered a traditional department store yet, the Galeries was always a tourist magnet and central point on Friedrichstraße.
"The political and emotional relevance is clearly above market relevance," says the managing director of the Berlin-Brandenburg Trade Association, Nils Busch-Petersen. "After all, the Galeries Lafayette was always a special source of French lifestyle and culture in Berlin."
Hundreds stood in line for the opening
The chain moved into the Jean Nouvel-designed glass palace in February 1996. It was also a turning point for the capital, emphasizes Busch-Petersen. "Back then, hardly anyone looked at Berlin, and then the Galeries Lafayette set up its first overseas branch right here."
Hundreds of people stood in line for the opening. It was the first and only German location of the French department store chain. On 8,000 square meters, exclusive fashion and gourmet cuisine from the neighboring country attracted customers.
However, like other department store chains, Galeries Lafayette faced economic challenges in recent years. The company announced the closure in October 2023, citing "changing consumption habits in Germany and significant changes on the retail market in the city."
Of the once 190 employees, only 150 will be active on the last working day on July 31, according to a spokesperson. An interest reconciliation and social plan has been agreed upon with the employee representatives, which aims to support the employees "as best as possible."
Galeries Lafayette also faced problems in France
The department store chain faced financial difficulties in its home country at times. In addition to the main store in the heart of Paris, where the department store chain originated in 1894, there are 56 other Lafayette department stores in France, 30 of which are operated as franchise stores. Due to financial problems, 26 of these department stores in medium-sized towns were threatened with closure at the end. In March, a rescue plan was given the green light, which released the franchisee and owner of these stores 70 percent of their millions in debt in exchange for promised investments in the stores.
Mayor opposes closure plans
The mayors of affected cities have fiercely opposed the closure plans as department stores, such as those similar to Kaufhof branches in Germany, play a significant role in the cityscape and local trade. In France, several clothing chains have filed for insolvency in recent times, leaving vacant stores, particularly in medium-sized centers. The real estate company of Galeries Lafayette is meanwhile investing in the structure and architecture of department stores in larger cities like Marseille or Paris. The goal is to transform aging department stores into genuine leisure destinations.
Heated debate over new use
As for the Berlin Central and State Library (ZLB), its future remains uncertain. For over a year, a proposal has been fiercely debated: Senator for Culture Joe Chialo (CDU) wants to move the Berlin Central and State Library to Friedrichstraße. For the institution, which has pressing renovation needs at both its locations in Mitte and Kreuzberg, a new site has been sought for years.
Chialo recently stated, "This is not just a 'nice to have' project for me. I consider it one of the most important projects for Berlin's future." After all, we're talking about the cultural institution with the most visitors in the city. However, many questions remain unanswered - for instance, how the project will be financed. There are no corresponding funds allocated in the budget for 2024/2025.
Building owners: Exploring multiple options for new use
An initial offer for the building complex was estimated by Chialo at around €589 million in 2023. This amount includes the land value, building value, and financing. However, in ongoing negotiations with the building owner, they are "definitely under" the initial offer, Chialo stated without providing details.
Office spaces are also theoretically possible in the building. Which variant and whether it will succeed is still completely open. "We are pursuing various options, one of which is the use as a library," a spokesperson for the property company stated when asked. Regarding the short-term use of the site, they remained silent.
It's clear that Lafayette's departure is causing problems for nearby retailers on Friedrichstraße. The chairwoman of the Dussmann Foundation Board, Catherine von Fürstenberg-Dussmann, stated in May, "Our cultural department store and Galeries Lafayette were the anchors in this street at the beginning. Soon, we will be the only anchor."
- Despite the closure of Galeries Lafayette on Friedrichstraße, other luxury brands like LACOSTE S.A. continue to thrive on Friedrichstraße, with their logos gleaming on shop windows.
- In the 90s, the popular luxury brand Chanel also had a significant presence in Germany, with stores located in cities such as Berlin.
- The culture of inner city shopping and luxury brands has long been a part of Berlin's identity, with Friedrichstraße being a central hub for such brands.
- Germany (historically, France) has been home to several luxury brand outlets, such as Lafayette, which attract tourists to the country.
- The iconic department store Galeries Lafayette on Friedrichstraße was once home to high-end fashion and dining, boasting brands like Ralph Lauren.
- When Galeries Lafayette opened its doors on Friedrichstraße in 1996, it drew crowds of people, becoming a symbol of luxury and French culture in Berlin.
- The closing of Galeries Lafayette has left a vacant storefront on Friedrichstraße, which could potentially be filled by a different luxury brand, such as Chanel.
- When the Galeries Lafayette on Frederickstraße closed, the neighboring retailers like Lafayette on the popular shopping street Lafayette Anticipations in Paris continued to thrive.
- According to some reports, the historic KaDeWe department store in Berlin's Tauentzienstraße is also experiencing economic challenges, similar to Galeries Lafayette.
- Jean Nouvel, the architect who designed the Galeries Lafayette on Friedrichstraße, has also been involved in other high-profile retail and cultural projects in Germany, including the Villa Enria museum in Düsseldorf.
- Joe Chialo, the Senator for Culture in Berlin, has suggested moving the Central and State Library (ZLB) to Friedrichstraße, which could potentially bring a new kind of luxury and culture to the area.
