French group SGM to partner with Banque des Territoires to buy premises of BHV department store

French retail group Société des grands magasins (SGM), which has been operating Parisian department store BHV since the end of 2023, is looking to secure a loan to buy the store’s iconic rue de Rivoli premises. SGM has been active on this for several months, and has now announced it has entered into exclusive negotiations to join forces with the Banque des Territoires bank to buy the premises, still the property of BHV’s previous owner, the Galeries Lafayette group.

As a result of this operation, whose timing has not been disclosed, Banque des Territoires is expected to acquire a minority stake in BHV, subject also to the bank financing the project by issuing a loan.

Banque des Territoires is a subsidiary of Caisse des Dépôts, a French public financial institution, and is involved in other retail-related operations as part of the Action cœur de ville programme for boosting city centre businesses, and in other projects to revitalise suburban areas.

“As a public investor committed to the economic prosperity of local areas, we believe that this project, which combines heritage preservation and modernity, is a unique opportunity to make this iconic venue a driving force to energise retail activity in the heart of Paris,” said François Wohrer, head of investments at Banque des Territoires.

SGM has meanwhile started to make changes to the assortment at BHV Marais, creating some tension with individual brands and suppliers, but the group’s stated goal is to transform the department store even further. A food market featuring butchers, fishmongers, bakers, cheese and grocery stalls, and a wine merchant is set to be introduced within the store, as well as a gym.

SGM said it also wants BHV to include “well-established sectors like DIY and home decoration, tableware, stationery and fashion.” Frédéric Merlin, president of SGM, said that “since we are well on the way to making BHV profitable again, we have the credibility and the means to make such ambitious plans for the future.”

In 2024, BHV Marais generated EBITDA of €9.6 million, although this went hand in hand with an 8% slump in sales, down to €260 million.