(Yicai Global) Aug. 17 -- Upmarket French department store chain Galeries Lafayette's Chinese subsidiary has signed a deal with real estate developer Shanghai Lujiazui Finance & Trade Zone Development Co. [SHA:600663] to set up a joint venture to set up the former's first location in the city by the end of next year.
The store will be situated in Shanghai's key financial zone of Lujiazui, in Pudong New District.
Shanghai Lujiazui Finance will provide Galeries Lafayette China Ltd. with some of the land for the 23,100-square-meter development, the real estate firm said in a press briefing on Aug. 16.
The Shanghai firm will fit out the property with Galeries Lafayette China responsible for other expenses.
The department store chain opened its first China location in Sep. 2013 on Xidan Commercial Street, Beijing. At the time, its China principal Liu Yongjie said it would open 16 stores in China over the next five years. However, sales at the Beijing store underperformed despite being in one of the city's most prosperous commercial areas.
Galeries Lafayette, founded in 1893, is the largest department store company in France. Societe Anonyme des Galeries Lafayette SA and IT Ltd. [HKG:0999] set up the China subsidiary in 2010.