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Even though the department store changed its name to Galeries Lafayette more than 30 years ago, Annecy’s1 residents kept on calling it Nouvelles Galeries. This is why Citynove (Galeries Lafayette Group’s real estate arm)2 revived the old name to develop a shopping centre around the existing department store. But its drive-to-store strategy is fully anchored in today’s retail: Citynove’s president, Eric Costa, described it as a pilot project for the group. The goal is to adapt the department store format to the local market's realities, client expectations, and competition to create an optimal environment for the stores to evolve. This approach reflects the group's strategy of owning most of its stores, allowing for easier transformation and adaptation. Considered by Galeries Lafayette as an illustration of what tomorrow’s department store could look like, the whole project aims at becoming a hybrid place where people come to shop and live. Officially completed in October 2023, here’s what the place has to offer.

A new project for a new neighbourhood

Nouvelles Galeries is part of a larger reorganisation of the city of Annecy, including the future opening of the International City of Animated Cinema, a gourmet mall, and a landscaped park. This will link Nouvelles Galeries with the city centre, bringing them closer to each other. As Eric Costa explained, “It is an important and essential operation as it is the first time Citynove has extended an existing store with new stores and then managed the shopping centre.” The extension adds 9,000 sqm to the existing 15,000 sqm store space and includes about 30 new retail units to welcome brands and services.

Also, Citynove wanted to avoid the traditional shopping centre models, aiming for a more innovative and unique retail experience: “Our objective is to move away from shopping centre uniformity, where the brands are the same everywhere. We have chosen local, passionate players and included many services and leisure options to make people want to come more often." Still, shopping remains a major reason to visit Nouvelles Galeries, so a driving force was needed besides the department store. Uniqlo was chosen to boost traffic and attract Swiss customers. This is their only store in the region, including in Switzerland, thus reinforcing the nature of Nouvelles Galeries as a retail destination.

The whole project started in 2020 and was completed in October 2023 (Galeries Lafayette refurbishment was completed in 2022). As explained by Eric Costa, “We agreed to have more emptiness (wide aisle, high ceilings, etc.) to offer spaces where people feel good, therefore losing space and profitability. The rents for local businesses are not extremely high either. We chose to spend more and have less income. A relationship-based retail model, and not just transaction-based, is the key to seeing customers return today." To bring this vision to life, architect Manuelle Gautrand was part of the shopping centre renovation. The first French architect to receive the European Architecture Prize in 2017, she was responsible for redoing the exterior of the 1969 building. Known for the famous Noma restaurant in Copenhagen, Danish architect and designer David Thulstrup was chosen to create the atmosphere of the interior street and squares of the Nouvelles Galeries, as well as the landscaped surroundings. Finally, Dutch designer Sabine Marcelis participated in the project. Named one of the eight most prominent women designers by the Financial Times, she was picked to create the interior furniture: visitors use the organic-shaped comfortable benches to relax or work on their computers thanks to the many available sockets.

Designed to be human-sized, the shopping centre is not as overwhelming as more traditional malls can be. The 30 or so stores and offerings focus on:

• Local brands: jewellery brand DupontDupont, environmentally conscious fashion brand Concrete Raw, Blømeko flower shop, and Snö cosmetic brand.
• Sports and outdoor brands (most of them are also local): Millet, Bogner, Ekosport retailer specialised in outdoor, Girls Up community store for women into sports, Les Petits Baroudeurs kids outdoor brand.
• Experience with entertainment and F&B: the Atome climbing room, open 7 days a week until 11 pm, is extremely successful. There’s also an exhibition space in the shopping centre. In terms of F&B, Biofrais organic supermarket is run by a local market gardener and was profitable from year 1. Customers can also find Shouka speciality coffee (from Chamonix), a local French pancake restaurant, a local juice bar, a local street food joint as well as a French brasserie chain restaurant and an Italian restaurant.

Other brands are available, such as fashion brands like La Petite Etoile, Yaya, a vintage clothing store, a Clarins store and more. Some stores are dedicated to rotating pop-ups to bring novelties. About ten retail units remain available for brands, including a restaurant space. A large pharmacy, a medical lab, Amazon lockers, and a kids playground have been added to the pre-existing post office to provide services to the local customers.

Building a community besides shopping requires significant marketing investments

To officially launch the project, the shopping centre doubled down on Christmas with a 360° experience to become the ‘talk of the town’. To celebrate the arrival of Uniqlo, the chosen theme was Japan. The purpose was to convey the message that, besides being a shopping centre, Nouvelles Galeries is a cultural hub including fun and unprecedented activities. To that end, hostesses dressed in kimonos welcomed visitors by inviting them to try Japanese tea. Traditional fabric wrapping, knife sharpening and Ikebana floral art workshops were organised. To attract families, the programme also included free activities designed for children: martial arts, calligraphy and kirigami (the art of paper cutting) workshops, to name a few. A photo exhibition mirroring photographs of landscapes from the Annecy region and Japan was also organised. Pianist Rieko Tsuchida gave a classical music concert, and a cosplay competition was held (playing the role of a fictional character by imitating their costume, hair, and makeup).

A complete media plan was developed to spread the word, targeting the region, including Switzerland, through billboards, press, Instagram, and a partnership with Le Bonbon (a free lifestyle newspaper with branches in Lyon and Geneva). As a result, 29 million people were reached during Christmas, and the shopping centre traffic increased by 46% compared to the previous year. Since then, and to maintain momentum, many activities have been organised throughout the year, dedicated to both adults and children, from Pilates for kids to ceramic painting.

Since the relaunch, Galeries Lafayette also doubled down on marketing and events to create female and male customer communities. They successfully organised a summer sales preview the night before the official kick-off. Partnering with a local female association, ‘Les Chic Filles’ (translating to ‘great chicks’), the soirée gathered 700 women coming to shop and have fun thanks to the various activities offered (piercing, tattoo, makeup workshops and more). The shopping spree was followed by a large dinner and dancing, for which customers were dispatched to the shopping centre’s various restaurants. The sales results were excellent, leading the store management to build a similar initiative for male customers: a sort of invitation-only club centred around food, wine and gaming. City figures, entrepreneurs and the store’s best customers are targeted and the first event will be hosted in late September 2024. Overall, marketing and CRM initiatives can be fine-tuned and tailored to specific customer groups, as 89% of the store turnover is attributed, thanks to the loyalty programme and payment card data.

The new Galeries Lafayette store: rejuvenated offer and concept

Galeries Lafayette has little local competition and a loyal consumer base, two ingredients that made the store profitable before the refurbishment. However, it lacked desirability with an outdated store concept, as is often the case in secondary cities, and a product offer that needed a refresh. The store manager ran many meetings with customers to understand their expectations: results showed they were very much attached to the store and were expecting the store to change with a premiumisation of the product offer.

Located at the centre of the mall, the store's  selling surface is 9,000 sqm divided into two floors, with two entrances on the ground floor and three on the first floor. The layout reflects customer preferences:

• Unlike usual layouts, the ground floor opens on the home department on one side (the 3rd home business of Galeries Lafayette’s owned network, excluding Haussmann). It includes furniture with AM PM and La Redoute Intérieurs (a private label), a large section dedicated to bed and bath linens, home scents, cookware and tableware.
• The other side opens on accessories (sunglasses, scarves), leather goods (with mid-range brands like Nat & Nin, Love Moschino, Vanessa Bruno, Jérôme Dreyfuss, Lancel, etc.) and the men’s department, which includes ready-to-wear and shoes.
• The men’s ready-to-wear section includes suit offerings from brands like Fursac and Boss and a large casual section from brands like Ralph Lauren, Lacoste, Timberland, Schott, etc. The Urban Galerie offers backpack options. To complete the offer, Galeries Lafayette’s multi-brand space, dubbed Creative Galerie (premium or affordable luxury brands, depending on the store), carries Play Comme des Garçons, APC, and Isabel Marant.
• Two other multi-brand spaces are at the centre of the ground floor: the Winter Galerie (with brands like Rains and Canada Goose) and the Summer Gallery (with swimwear and beachwear).
• The centre of the floor also houses jewellery and watches, cosmetics, and beauty. Leader brands (Chanel, Dior Guerlain, etc.) have corners, and the Beauty Galerie (which gathers alternative brands), a perfume shop, and a niche fragrance space complete the floor.
• Private labels are very efficiently demonstrated on both floors, in the home, women and men's departments.

The escalator and a slide are at the centre of the store, linking the 2 floors. The slide represents an entertaining initiative driving many customers in. Kids and adults alike are having fun using it, and it has recorded 3 million posts and views on TikTok, often generating a line on Saturdays. A baby foot and an arcade game are also available and attract a lot of teenagers.

The first floor gathers women’s fashion with ready-to-wear shoes with brands such as Sandro, Sessun, Soeur, Zadig & Voltaire, American Vintage, Vanessa Bruno, Tommy Hilfiger, Zapa, Jonak, Birkenstock, Doc Martens, and more. A Crush On second-hand shop-in-shop is available on top of the escalators. As for the menswear department, the space includes an Urban Galerie with Dickies, Levi’s, Carhartt, etc. and a Creative Galerie with Samsoe Samsoe, APC and more. Despite being challenged categories these days, lingerie and kidswear have been attributed to large spaces. Finally, a small gourmet store and a luggage section are available to customers. The floor is also the place for services, including a VIP lounge and personal shopping, tax-free shopping, and click & collect. The VIP lounge is also used for events and collaborations with brands (sometimes monetised) and can transform into a beauty cabin. /nbsp]

Regarding the store concept, the furniture is harmonised across the store, be it for homeware, ready-to-wear, or shoes. Brands personalise a wall of their spaces and display bits of their store concept (usually a carpet and a piece of furniture). Only Fursac, Boss, Tommy Hilfiger, Ralph Lauren and Lacoste have a fully personalised space. High ceilings, hardwood floors, large alleys, and the see-through harmonised furniture make the store feel airy and harmonious. Reminding of Annecy’s Lake tones, blue and green colours are used on walls separating spaces and brands. Arches mimicking Annecy’s architecture on the ground floor separate leather goods from jewellery and the beauty department from home offerings. Also, the red shade is used on pillars to create focus points.

Is it working?

The refurbishment brought new customers in, including more Swiss citizens than before. During the last two years, these customers increased by +40%. Overall, the store recorded a +22% growth in traffic (2024 YTD compared to 2023). The store is a destination. It accounts for around 250 staff members (including approximately 100 people from brands). The conversion rate is high: roughly 30%, with a minimal decrease explained by the traffic increase. Shopping frequency also increased. The average basket ranks 2nd in Galeries Lafayette’s network after Nice (excluding Haussmann and Champs-Elysées) thanks to cross-selling. The turnover is increasing: 2024 recorded the store’s highest turnover ever. The company is optimistic about growing more in 2025, according to plans. The store now ranks 7th in Galeries Lafayette’s owned network (excluding Haussmann and Champs-Elysées stores) compared to 9th before. The presence of Uniqlo didn’t seem to erode private label turnover, even for the cashmere group. So far, private labels posted a +23% growth between 2023 and 2024.

The transformation of the Nouvelles Galeries into a modern retail and cultural hub exemplifies a forward-thinking approach to the department store format. By reviving the historical name and integrating it into a broader urban redevelopment, Galeries Lafayette has successfully aligned its retail strategy with local cultural and economic contexts. The project has expanded the shopping options, incorporating diverse local brands, sports and outdoor offerings, and unique entertainment experiences, enhancing its appeal as a destination. The inclusion of Uniqlo and the focus on creating a unique retail experience have been pivotal in attracting local and international customers, mainly from Switzerland. The strategic use of marketing and community events has further solidified its position as a cultural hub, driving significant growth in traffic and turnover. This rejuvenated approach revitalises the store's image and sets a benchmark for future developments within the Galeries Lafayette network, showcasing the potential of blending retail with cultural and experiential elements.

Credits: IADS (Christine Montard)