Brands
Galeries Lafayette lands in Mumbai with massive bet on Indian luxury
MUMBAI: Mumbai will get its first luxury department store next month when Galeries Lafayette throws open the doors of its 90,000 sq ft flagship in the heritage Turner Morrison and Voltas House buildings at Kala Ghoda. The move marks the French retailer’s biggest bet yet on India’s exploding luxury market, forecast to hit $85bn by 2030.
The partnership between the 130-year-old Parisian institution and Aditya Birla Fashion and Retail Limited (ABFRL), struck in 2022, brings more than 250 global luxury brands to five floors of meticulously restored colonial grandeur. London’s Virgile + Partners has designed the space to blend Parisian refinement with Mumbai’s architectural heritage.
Aditya Birla group chairman Kumar Mangalam Birla called it “a coming-of-age moment for Indian luxury retail.” He pointed to India’s fastest-growing affluent population and a new generation of globally exposed consumers hungry for high-end experiences. “For the first time, India will welcome a luxury department store, housed in landmark real estate, executed with precision, and infused with the elegance of Indian sensibilities,” he said.
Galeries Lafayette group executive chairman Nicolas Houzé described the Mumbai opening as “a defining moment” that brings together French heritage with India’s energy and cultural richness. The partnership with the Aditya Birla group, he added, gives the project “a particularly strong foundation.”
To mark the occasion, both chairmen sailed from the Gateway of India aboard a flotilla of yachts for a celebration on the Arabian Sea—a suitably theatrical arrival for a brand built on spectacle.
Beyond the merchandise, the flagship offers personal styling, private lounges, concierge services and curated cultural programmes. ABFRL, managing director Ashish Dikshit said the store aims to create “cultural experiences” that go beyond retail. “We are setting new benchmarks in assortment, service and experience,” he said.
The store opens early next month at 16 G. Vaidya Road, Kala Ghoda. If India’s luxury trajectory holds, it won’t be the last of its kind. Mumbai’s moneyed set, it seems, is ready to shop like Parisians—without leaving home.
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
