Société des Grands Magasins

Société des Grands Magasins (SGM) is a French family-owned property company (société foncière) focused on acquiring, renovating and revitalising existing retail assets in city centres. Founded in 2018 by Frédéric Merlin and his sister Maryline, in partnership with Avenue Développement Immobilier — a property company created in 2015 by the Merlin family — SGM has grown into a notable player in French urban retail real estate. Its stated mission is to transform and energise town centres through a comprehensive expertise in retail property, combining acquisition, renovation and repositioning of commercial assets. The group describes itself as a family business with an entrepreneurial, creative and bold approach, building trusted relationships with partners, retailers, major chains and local stakeholders. Its strategy places positive impact at the centre, aiming to design attractive commercial spaces that stimulate the local economy and strengthen community ties. SGM positions itself as an incubator of new trends, offering a strategic showcase to daring creators and retail concepts shaping the commerce of tomorrow. According to its official website, SGM employs around 1,000 people, manages 360,000 m² of assets across 18 sites in France, and welcomes approximately 85 million visitors per year. Its portfolio has included shopping centres such as Espace Grand Rue in Roubaix, Okabé in Le Kremlin-Bicêtre and Galerie de l'Hôtel de Ville in Châlons-en-Champagne, as well as seven Galeries Lafayette department stores in provincial cities. In November 2023 it acquired the BHV brand and the retail operations of BHV Marais and BHV Parly 2. SGM has also been the subject of significant controversy. In 2024 the press reported cash-flow difficulties. In October 2025 the group concluded an agreement with the fast-fashion brand Shein to open a store in BHV Marais and in five provincial Galeries Lafayette stores, triggering widespread opposition and the exclusion of SGM from the Union du Grand Commerce de Centre-Ville. In November 2025, after the discovery of child-pornographic sex dolls sold online by Shein, Galeries Lafayette ended its collaboration with SGM; the seven franchised Galeries Lafayette stores operated by SGM were to be converted into BHV. SGM nonetheless maintained the opening of a Shein store within BHV Paris on 5 November 2025. In June 2026 the company reportedly ceded its subsidiary SEGM BHV, which operates BHV Marais, at a negative price.

Société des Grands Magasins (SGM) was founded in 2018 by Frédéric Merlin and his sister Maryline, in partnership with Avenue Développement Immobilier, a property company created in 2015 by the Merlin family. The group is a French family-owned real-estate company specialising in the revitalisation of city-centre retail assets. In its founding year, SGM acquired Espace Grand Rue in Roubaix. In 2019, it purchased from Altarea the Okabé shopping centre in Le Kremlin-Bicêtre and the Galerie de l'Hôtel de Ville in Châlons-en-Champagne. These acquisitions established SGM's strategy of acquiring existing commercial assets and repositioning them. In 2022, SGM acquired seven Galeries Lafayette department stores located in Le Mans, Dijon, Angers, Reims, Orléans, Limoges and Grenoble, as well as the Marché de Vaugirard shopping gallery on rue Falguière in Paris 15th arrondissement, from Société de la Tour Eiffel. This significantly expanded its footprint in provincial city centres. On 10 November 2023, Groupe SGM acquired the BHV brand and the retail operations of two stores: BHV Marais and BHV Parly 2. This marked a major step into operating department stores under a historic Parisian brand. In August 2024, the press reported that the BHV brand was experiencing cash-flow difficulties. In October 2025, SGM concluded an agreement with the fast-fashion brand Shein, allowing it to open a store in BHV Marais as well as in five Galeries Lafayette stores in the provinces. The announcement provoked unanimous opposition, and several partner brands of BHV announced they would not renew their collaboration. The Union du Grand Commerce de Centre-Ville voted unanimously to exclude SGM. In November 2025, after the discovery of child-pornographic sex dolls sold online by Shein, the Galeries Lafayette group ended its collaboration with SGM. The seven franchised Galeries Lafayette stores operated by SGM were to be transformed into BHV, announced Frédéric Merlin. The founder of SGM stated in an interview on RTL that he had considered breaking the partnership with Shein but had been "convinced to continue" by them. Despite the many controversies surrounding Shein, SGM maintained the opening on 5 November 2025 of a Shein store within the BHV department store in Paris. In June 2026, the company ceded its subsidiary SEGM BHV, which operates BHV Marais, at a negative price.

• 2026

  In June, cedes subsidiary SEGM BHV at a negative price

• 2025

  In October, concludes agreement with Shein; in November, Galeries Lafayette ends collaboration and Shein store opens in BHV Paris on 5 November

• 2024

  In August, press reports cash-flow difficulties

• 2023

  On 10 November, acquires BHV brand and BHV Marais and BHV Parly 2 operations

• 2022

  Acquires seven Galeries Lafayette stores and Marché de Vaugirard gallery from Société de la Tour Eiffel

• 2019

  Acquires Okabé in Le Kremlin-Bicêtre and Galerie de l'Hôtel de Ville in Châlons-en-Champagne from Altarea

• 2018

  Société des Grands Magasins founded by Frédéric Merlin and Maryline Merlin; acquires Espace Grand Rue in Roubaix

• 2015

  Avenue Développement Immobilier created by the Merlin family

Specialist in city-centre retail real estate, revitalising hypercentres through acquisition, renovation and repositioning of existing commercial assets.

• BHV Marais

• BHV Parly 2

• Galeries Lafayette franchised stores

• Espace Grand Rue Roubaix

• Okabé Le Kremlin-Bicêtre

• Galerie de l'Hôtel de Ville Châlons-en-Champagne

• Marché de Vaugirard Paris 15e

1. 1Groupe SGM – Spécialiste du commerce en centre-villegroupe-sgm.com
2. 2Société des Grands Magasinswikidata.org
3. 3Société des Grands Magasinsfr.wikipedia.org