France’s iconic Galeries Lafayette closed its flagship Beijing department store on Wednesday after 13 years in the Chinese capital – citing weaker spending, changing shopping habits and a slowdown in the luxury sector. Its stores in Shanghai, Shenzhen and Macau will remain open.
A steady stream of shoppers browsed for last-minute deals on Tuesday, the French news agency AFP reported, as employees packed away unsold merchandise inside the six-storey, 48,000-square metre store, located about three kilometres west of the Forbidden City.
“I noticed there weren’t many customers, but I never imagined that one day it would suddenly close down and then leave,” finance worker Qian Linlin said.
“After it opened, at the time, it was also a landmark building, and us young people would all come over to shop. We can only look back on memories.”
The retailer announced the closure earlier this month in a social media post.
Luxury within reach
When Galeries Lafayette opened in mainland China in 2013, the country’s fast-growing middle class was becoming a major force in the global luxury market.
International brands that had once seemed out of reach were becoming accessible to millions of Chinese consumers.
But the Covid-19 pandemic and a prolonged property crisis weakened domestic spending and forced luxury brands to adjust to slower growth.
Consumer spending in China grew at its slowest pace in more than three years last month, official data showed.
China’s luxury market declined by 3 to 5 percent in 2025 after falling 17 to 19 percent the previous year, according to consultancy Bain & Company.
“Because of the economic downturn, people are much more rational and they have to navigate through this difficult period,” Lisa Nan, editor at luxury industry publication Jing Daily, told AFP.
More cautious spending was visible even in Shanghai’s upmarket shopping districts.
“I find myself wanting to save money even more now,” said 24-year-old shopper July Xu.
“Having lived through such an extraordinary period during the pandemic, I’ve come to realise that having some personal savings is quite important.”
Logos out, experiences in
The rise of online shopping has also reshaped retail habits, with consumers increasingly buying discounted products through online platforms and livestream sales.
“When I shop offline, after I spot an item of clothing, I’ll see how much it costs to purchase online,” 46-year-old freelancer Yang Dunqin said during one final visit to the Beijing store before it closed.
“It just shows that this era continues to move forward. It’s part of changing times.”
Younger Chinese consumers are also becoming less focused on famous international logos and more interested in newer brands and shopping experiences.
“The need to buy luxury is no longer just a taste of their social status,” Nan said. “It’s really about self-expression.”
“Consumer expectations regarding the traditional department store model have evolved significantly,” Galeries Lafayette said in a statement announcing the closure.
Modern shoppers are increasingly looking for convenience, better service, more meaningful experiences and a greater sense of wellbeing, the company said.
(with AFP)
