Teh group has returned management of the famous store located in the Marais to its parent company. The opening, in 2019, was quickly interrupted by Covid-19 and traffic restrictions in this historic Paris neighborhood.
It is indeed a return to its origins for the high-end grocery brand Eataly, known throughout the world and which arrived in France in 2019. The Galeries Lafayette group has signed an agreement with the Italian group of the same name to sell the management of the famous brand store located in Parisian Marais, rue Sainte-Croix de la Bretonnerie, located in a small form. It also abandons the franchise for all of France.
Though, Galeries Lafayette’s ambitions were large when the Marais factory opened in April 2019, with the aim of subsequently developing the brand in the region. This shop, which extends over three floors, has something to seduce with its market, its cellar and its seven restaurant areas. But the results don’t follow. This Parisian flagship, which welcomes an average of 6,000 customers a day, is recording financial losses.
The coronavirus crisis, which hit the country and the world less than a year after this opening, did not make the task any easier. The closures and restrictions adopted during the pandemic actually interrupted the launch dynamic for two years. The increasingly difficult access to this historic district of Paris hasn’t helped the situation either. With the pedestrianization of rue de Rivoli, located a few steps away, which according to traders weighs on the number of shops in the area. Added to this is the establishment of the limited traffic zone (ZTL) in the hyper-center of Paris (including the Marais district) last October.This much criticized provision prohibits the circulation of vehicles that pass through only the first four districts of the capital.
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“Eataly is an extraordinary concept that has all the legitimacy to develop further in France. We are convinced that the resumption of activities hoped for by the company outside the Italian borders will give renewed impetus to Eataly Paris Marais.assures Nicolas Houzé, president of the board of directors of the Galeries Lafayette group which remains the owner of the walls. For the Eataly group, 52% owned by Investustrial since 2023, this acquisition represents a basic step in its strategy. “to better control its international progress and consolidate control of its store network on a global scale.”
The group has opened more than 50 locations in 15 countries, including Italy, the United States, Canada, Japan, Germany, the United Kingdom, South Korea and Saudi Arabia. he intends to continue his expansion and does not intend to abandon the conquest of France. “Since the opening of our first store in 2019, this country has represented a vrey important market for us,” said Andrea Cipolloni, CEO of the Eataly group. In the future,we will expand our presence in major airports such as Paris-Charles de Gaulle and Paris-Orly,and we plan to also expand in train stations and strategic locations in major urban areas.”
With this operation, the Galeries Lafayettes group continues to refocus its activities around its most strategic establishments in large cities and international capitals. For several years,department stores have been facing great difficulties,faced with the growth of online commerce and suburban shopping centers. The pandemic has made the situation considerably worse with the long weeks of closures and the absence of key Asian tourists for sales.
The group has thus sold most of its stores located in the province as franchises.The Bordeaux entrepreneur Michel Ohayon recovered twenty-six in 2018 and 2021 (operations and walls). Then, in 2023, the Lyon real estate company Société des grands stores (SGM) bought BHV Marais from Galeries Lafayette, very close to Eataly, which had also been in financial difficulty for more than ten years. At the moment, SGM has not yet finalized the financing plan for the purchase of the walls.
What challenges are high-end grocery brands like Eataly facing in urban centers after the pandemic?
Interview between Time.news Editor and Eataly Expert
Time.news Editor: Welcome to our special segment on the evolving landscape of retail in France, notably in light of the pandemic’s impact. Today, we’re joined by [Expert’s Name], an expert in retail management and European market trends. Thank you for being with us today!
expert: Thank you for having me! it’s a pleasure to discuss such an interesting topic.
Time.news Editor: Recently, we learned that the Galeries Lafayette group has returned management of the Eataly store in the Marais district to its parent company. This store opened in 2019 but faced immediate challenges due to the COVID-19 pandemic. What does this tell us about the challenges faced by large retailers in urban centers,especially in the wake of such unprecedented global events?
Expert: That’s a great question. The pandemic truly reshaped consumer behavior and retail operations. For high-end grocery brands like eataly,which thrive on foot traffic and experiential shopping,the challenges were amplified. The marais store was aspiring—it offered three levels,a market,a cellar,and several dining options. However, welcoming just 6,000 customers a week isn’t sustainable for a venue of that scale.
Time.news Editor: Absolutely, and it sounds like Galeries Lafayette had important ambitions when they opened the store. With the decision to return the management of Eataly to the original parent company, what implications does this have for the brand’s future in France?
Expert: Returning to the parent company may allow Eataly to refocus its strategy on what works best for its brand. Eataly is renowned for its quality and experience; relinquishing the franchise approach could streamline operations and bring a more cohesive brand message to the French market. Moving forward, it will be vital for Eataly to adapt to local preferences while retaining its Italian identity.
Time.news Editor: You mentioned consumer behavior. Considering these trends, how do you predict Eataly could effectively engage customers post-pandemic?
Expert: Engagement will be key. Eataly could enhance its delivery options, leverage online platforms, and host in-store events that draw people back in. Creating a community-oriented experience—perhaps through workshops or local product showcases—could stimulate interest and traffic.It’s about bridging the gap between the physical and digital shopping experience.
Time.news Editor: That’s an insightful viewpoint. Given the reopening of businesses and the gradual return to normalcy, do you think we might see a resurgence in foot traffic for high-end grocery stores in urban areas?
Expert: Yes, I do believe we will see a resurgence, but it may take time. Consumers have adjusted their habits—some have turned to online shopping permanently. high-end stores need to be not just places to shop but destinations where customers can enjoy an experience—like dining options, events, and exclusive products. The challenge will be standing out in a competitive landscape.
time.news Editor: Certainly, and considering Eataly’s unique offerings, they have a strong foundation to build upon. lastly, what is your overall outlook for the future of Eataly in France, given the factors we’ve discussed?
Expert: as long as Eataly leverages the strengths of its brand while adapting to the evolving market conditions, I see potential for recovery and growth. They have the advantage of being part of a global brand that resonates with consumers. If they can reignite that passion and loyalty among the French clientele, there’s a real chance for their flagship to thrive.
Time.news Editor: Thank you, [Expert’s Name], for sharing your expertise with us today. It certainly seems like an exciting time ahead for Eataly and the retail landscape in France.
Expert: Thank you for the engaging discussion! It’s definitely a pivotal time for the industry, and I look forward to seeing how it unfolds.