In early April, the departure of the purchasing director—a cornerstone of the store—and that of Emmanuelle Claverie-Veysset, the general manager, reignited concerns as several executive committee members have stepped down in recent months. These departures are seen as a sign of harsh management by some former employees. Frédéric Merlin dismisses these concerns: “It’s normal to bring in new blood.”
To speed up the transformation, he has appointed his right-hand man, Karl-Stéphane Cottendin, also 32, as the head of the department store. Some fear further job cuts to improve margins after 150 departures since his takeover, leaving 1,000 employees. “Our only goal is to do business,” he asserts.
Pop-up stores featuring brands like TF1, Pokémon, or influencer Léna Situations are frequently set up to boost foot traffic. “It’s a smart move, and it doesn’t require huge investments,” notes Nicolas Rebet, founder of the consulting firm Retailoscope.
Frequented by a clientele that is 85% local, BHV stands out among the capital’s major department stores. The DIY section in the basement remains a draw. “However, its failure to move upscale is unsustainable, argues Vincent Chabault, a sociologist specializing in commerce at Gustave-Eiffel University. “The Marais has become an ultra-touristic area, with luxury hotels.”
Conversely, Frédéric Merlin is taking the opposite bet. “We want to be the department store for all Parisians with a dining offer from 14 to 150 euros,” he insists. A complete reorganization of the premises (and then its website) is set to be unveiled in May by the owner who has already invested 58 million in his project. The plan includes restaurants covering more than 4,000 square meters on the top floor and a fitness center… At the risk of turning BHV into a shopping center, similar to the galleries owned by SGM in several cities.
Today, the fate of Frédéric Merlin lies in the hands of the Caisse des Dépôts, which might support him as a minority shareholder. “The case is currently under review,” acknowledges the public institution. The new owner highlights an EBITDA that has reportedly returned to positive figures, at 10 million. He also counts on the support of the Paris city hall: closing the store would harm the municipal majority one year before elections—especially given the heated debates about the impact of pedestrianizing Rue de Rivoli on local businesses.
Inspiration from Le Bon Marché at La Samaritaine
It’s not just BHV that is struggling on the famous Rue de Rivoli. La Samaritaine is “facing difficulties,” according to its owner, Bernard Arnault (LVMH, shareholder of Challenges). According to a union source cited by L’Humanité, the losses were 90 million euros in 2023. The upscale positioning of the department store—reopened in 2021 when Asian tourists vanished—has not resonated, explains Nicolas Rebet, consultant and founder of Retailoscope: “Historically, La Samaritaine catered to everyone, it was in its DNA. And their environment is not simple, since Rue de Rivoli is very mass market.”
In late March, a joint management for La Samaritaine and Le Bon Marché—the other major department store of LVMH which is thriving—was established, under the leadership of Patrice Wagner, who until now was in charge of the premium grocery. Thus, the department store is moving away from DFS, its subsidiary specializing in tax-free products, to embrace a less exclusively luxurious approach. The beauty section is already working on an offering for the local clientele, including the arrival of cosmetics brand by Gaëlle Garcia Diaz, a Belgian influencer. Could this be a revival for the smallest of the grand department stores?
By G. E. and Claire Bouleau
