August 31, 2017 / 8:01 AM / 2 years ago

France's Galeries Lafayette to buy out online retailer La Redoute

The department store Galeries Lafayette is pictured in Berlin, Germany, March 16, 2017. REUTERS/Hannibal Hanschke

PARIS (Reuters) - French luxury department store Galeries Lafayette is to buy a majority stake in online and catalog retailer La Redoute, the companies said on Thursday, in a deal Lafayette said would deliver cost-savings and boost its digital businesses.

Lafayette said it would buy an initial 51 percent stake in La Redoute, and would aim to own all of it in future.

The price was not disclosed. La Redoute currently has 750 million euros in annual revenue.

“While the fashion and retail industries face unprecedented global change, the complementary positioning and expertise of La Redoute and Galeries Lafayette - the group’s flagship brand - would establish us as a leading physical and digital retailer specialized in fashion and home furnishings, with French roots and international outreach,” said Galeries Lafayette executive chairman Philippe Houze in a statement.

Reporting by Sudip Kar-Gupta; Editing by Andrew Callus

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