Dubai: Operators of Dubai Mall, the main retail component of the Dh73 billion Downtown Burj Dubai development, have signed up major French retailer Galeries Lafayette to open its first department store in the Middle East.
At 192,000 square feet, the outlet is slated as an anchor tenant of the 5.8-million-square-foot mall - occupying five per cent of the leasable retail space -and is set to become the biggest single store in the UAE.
Galeries Lafayette sells fashion wear for men, women and children, as well as home products and food. It was founded in Paris in 1895 and is known for its flagship store on Boulevard Haussmann.
Project developer Emaar Properties says 80 per cent of the Dubai mall's available space has been committed, with opening scheduled for the fourth quarter of 2008. In total, more than 10.5 million square feet of retail space could become available in Dubai in 2008, according to Colliers International.
"Galeries Lafayette is a sterling addition to our client portfolio," said Emaar Properties chairman Mohammad Al Abbar, without revealing the identities of other tenants.
Galeries Lafayette group chairman and owner, Philippe Houze, said the company's Dubai venture signals a new phase in its 100-plus-year history.
"The choice of Dubai is fully in line with our decision to develop into an international chain. The next phase may involve Asia - notably Shanghai and Macao." he said.
The deal ends speculation over the identity of the main department store in Dubai Mall, which is set to become Dubai's largest mall upon opening.
"This move signals the increasing sophistication of Dubai's retail sector," said Neil Tunbridge, head of retail services at Dubai-based consultancy GRMC.
Analysts say Galeries Lafayette may enjoy a niche in Dubai's market, positioned higher than department stores Bhs and Debenhams, but slightly more mainstream than main competitors such as UK luxury store Harvey Nichols and US department store chain Saks Fifth Avenue.
The company's only other store outside France opened in Berlin in 1996. It recorded total retail sales including VAT of 2.4 billion euros in 2006 and has a 12,022-strong workforce.
