France's Galeries Lafayette eyes China retail chain

PARIS, Dec 3 (Reuters) - Upmarket French department store group Galeries Lafayette said on Monday it was holding talks with Hong Kong-based I.T Ltd (0999.HK) that could lead to the opening of one or more Lafayette-branded stores in China.

In a statement, Galeries Lafayette said the aim in a first phase was to open a store in Beijing or Macau.

"Once this project is launched, the parties shall enter into a joint venture agreement. The JV, of which I.T will have a majority shareholding, shall set up, manage and operate the first and, possibly, other department stores," it said.

I.T Managing Director William Lo said the deal came on top of I.T's existing target to triple its retail presence in China in the next three years.

"We will continue to look for new opportunities to grow our business and to return value to our shareholders and stakeholders," he said.

Galeries Lafayette, part of privately held Groupe Galeries Lafayette, runs 64 department stores in France and Germany and had 2.4 billion euros of sales in 2006 including sales tax. The group's other brands include home improvement store BHV and a 50 percent stake in supermarket group Monoprix. (Reporting by Nick Antonovics, editing by Will Waterman)