What: SGM enters negotiations with Banque des Territoires to acquire BHV Marais' property, marking a crucial step in the store's transformation plan.

Why it is important: This development represents a new approach to department store revitalisation, combining institutional investment with retail expertise.

SGM has initiated exclusive negotiations with Banque des Territoires to acquire the iconic BHV Marais building, currently owned by Galeries Lafayette. The public institution would take a minority stake in the project, which is contingent upon securing additional bank financing. This partnership aligns with Banque des Territoires' commitment to urban economic vitality through its 'Action cœur de ville' programme. SGM has already begun transforming BHV Marais' retail offering, despite some tensions with brands and suppliers. The planned evolution includes introducing a food market featuring seven speciality areas - butcher, fishmonger, bakery, cheese shop, grocery, produce, and wine cellar - alongside a new fitness facility. The group maintains its commitment to preserving BHV's traditional DIY and homeware departments, while expanding into fashion and stationery. The store's financial performance shows promise, with a 2024 EBITDA of €9.6 million, though sales declined 8% to €260 million.

IADS Notes: Since SGM's acquisition in November 2023, BHV has undergone significant transformation, achieving a remarkable turnaround by January 2025 with €9.6 million EBITDA despite sales challenges. The April 2025 appointment of a new CEO further accelerated the store's independence from Galeries Lafayette, while a September 2024 €38 million recapitalisation provided crucial financial stability. This evolution mirrors broader changes in French department stores, as demonstrated by Galeries Lafayette's own €400 million investment plan and network optimisation strategy.

Société des Grands Magasins (SGM) has a new plan to acquire BHV Marais’ property