PARIS — LVMH Moët Hennessy Louis Vuitton has created a new governance structure reuniting its two Paris department stores, Le Bon Marché and la Samaritaine, after acquiring the latter from its travel retail division DFS, the luxury group said Friday.
Patrice Wagner, chairman and chief executive officer of Le Bon Marché Group since 2010, has been named head of the new unit, according to an internal memo seen by WWD. The reorganization is designed to turn around la Samaritaine, which is struggling amid a global slowdown in luxury spending.
Catherine Newey remains CEO of la Samaritaine and becomes deputy CEO of Le Bon Marché Group. Newey was initially named head of DFS Europe last June after seven years at Le Bon Marché, where she rose to the role of managing director.
“This new organization illustrates the importance that LVMH attaches to its Paris department stores, for which the group harbors strong ambitions,” the luxury conglomerate said.
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“La Samaritaine boasts an exceptional location and historic roots in the heart of Paris. Le Bon Marché has forged a powerful Parisian identity, blending creativity, exacting professionalism and a unique customer experience. Together, they will be able to leverage their complementary assets to further bolster their strong positions with distinctive client segments,” it added.
In his last press conference as chief financial officer of LVMH, Jean-Jacques Guiony revealed in January that the group had bought la Samaritaine from the duty-free retail division, though he did not specify when the transaction took place.
“The business, which was mostly aimed at Chinese tour groups, is indeed suffering at Samaritaine, and that is why we are taking it out of the orbit of DFS, which specializes in this type of clientele, in order to reposition it in a more general direction,” he said.
Guiony said DFS registered losses of “several hundred million” euros last year due to unfavorable currency fluctuations. The division announced in November it was shuttering its Fondaco dei Tedeschi store in Venice.
The latest shakeup comes amid a slew of management changes at the luxury giant, which saw Guiony become president of the wines and spirits division. LVMH also named a new head of its watch unit Friday.
A retail industry veteran, Wagner joined LVMH from German department store chain Karstadt, which has since merged into Galeria Karstadt Kaufhof. Under his stewardship, Le Bon Marché underwent a significant renovation, expanding its floor area by 43,000 square feet.
His résumé also includes stints at Berlin department store KaDeWe and Galeries Lafayette in Germany. Since January 2021, he also oversees LVMH’s elite luggage-maker Rimowa.
