Galeries Lafayette plans to close at least two loss-making department stores in France as it saves its cash for an international expansion aimed at tapping high-spenders from emerging markets to counter weak demand at home, unions said on Tuesday.
The unlisted group told staff representatives at a meeting earlier in the day that it would close the Thiais store near Paris and the Beziers store in southern France.
It had yet to decide whether it would close or cut selling space at the Lille store in northern France, unions said.
The Thiais store employs 117 people, Beziers 45 and Lille 134. Galeries Lafayette, which wants to avoid lay-offs, told unions it would seek to re-employ staff elsewhere in the group.
Galeries Lafayette declined to comment.
Founded in 1894, the Galeries Lafayette group operates a chain of 58 stores in France, including the flagship 60,000 square meters Boulevard Haussmann store in Paris.
Galeries Lafayette's department stores had sales of 3.8 billion euros ($4.09 billion) in 2014 and employ 12,000 people in France.
The group has overseas stores in Berlin, Casablanca, Jakarta, Dubai, Beijing and plans openings in Milan, Doha and Istanbul by 2018.
In Paris, it plans to open a new store on the posh Champs-Elysees, a tourist hotspot, by 2018.
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