What: LVMH creates new department store division combining Le Bon Marché and La Samaritaine following acquisition from DFS.

Why it is important: This reorganisation signals a strategic shift in luxury retail, moving from travel retail toward a more sustainable, locally-relevant business model.

LVMH has announced a significant restructuring of its Paris department store operations, creating a new governance structure that unites Le Bon Marché and La Samaritaine under single leadership. The reorganisation follows LVMH's acquisition of La Samaritaine from its travel retail division DFS, which has struggled amid global luxury spending slowdown. Patrice Wagner, chairman and CEO of Le Bon Marché Group since 2010, will head the new unit, while Catherine Newey, who was initially named head of DFS Europe last June, becomes deputy CEO of Le Bon Marché Group. The move aims to leverage the complementary strengths of both properties: La Samaritaine's exceptional location and historic roots in central Paris, and Le Bon Marché's established Parisian identity combining creativity with professional execution. This strategic realignment particularly focuses on turning around La Samaritaine's performance by shifting away from its previous focus on Chinese tour groups toward a broader customer base.

IADS Notes: LVMH's decision to unite Le Bon Marché and La Samaritaine under single governance builds upon strategic shifts identified in January 2025, when the group first announced La Samaritaine's separation from DFS Group. This reorganisation reflects a fundamental transformation in luxury retail strategy, moving away from dependence on Chinese tour groups toward a more diversified customer base. The appointment of Patrice Wagner to lead both stores, along with Catherine Newey as deputy CEO, demonstrates LVMH's commitment to leveraging complementary assets while repositioning these historic properties for contemporary market demands. This strategic evolution aligns with broader changes in luxury retail, where success increasingly depends on creating distinctive experiences for individual shoppers rather than relying on traditional travel retail models.

LVMH reunites Le Bon Marché and La Samaritaine in new division