The key facts
- The number of police on the streets will rise by 20% compared with last weekend — Jean-Didier Berge
- Carrefour expects a hit to profitability of up to €200 million; about 50 of its stores were hit on the first day
- Protests over the cost of living escalated into ransacking: Burberry, Dior, Guerlain, Hermes and others were looted
Reinforcement of Law Enforcement
Cities across France will receive police reinforcements after demonstration bans were lifted in many places. President Emmanuel Macron, back from a tour of the Gulf, held a meeting with intelligence services at the Elysee Palace on Thursday morning amid concerns that they had misjudged how to respond to last week's violence and looting. According to Junior Interior Minister Jean-Didier Berge, the number of police on the streets will be 20% higher than last weekend. He told BFMTV that leave for some officers has been cancelled and police are permitted to use special equipment, including stun grenades — their use had raised questions after a teenager lost a hand picking up a grenade at one of the earlier demonstrations.
Measures for Businesses and Protesters' Plans
Paris police chief Patrice Faure called on traders to strengthen their own security — hiring private guards, possibly with dogs, and using alarm systems. Protest actions are planned for Thursday in several cities, including Lille, and on Saturday in Paris. Prime Minister Sebastien Lecornu promised 'massive' security measures for Saturday, speaking in the National Assembly; details are to be presented by Interior Minister Laurent Nunez.
Damage to Luxury Retail
On the Champs-Elysees, the flagship Louis Vuitton store closed its windows with metal grilles, as did the Christian Dior Couture boutique on Avenue Montaigne. On Rue Saint-Honore, where crowds broke into and looted Burberry, Christian Dior perfume and Guerlain stores on Saturday, windows are boarded up; these three boutiques, along with the looted Salomon store on Boulevard de la Madeleine, remain closed. The Hermes boutique on Avenue George V suffered broken windows, and the brand's store in Marseille, which was looted more heavily, 'will not open in the near future,' CFO Eric du Halgouet said on Thursday; the company has stepped up security measures.
Retailers' Estimates
The riots began after Saturday's protests over the cost of living, which drew more than half a million people across France; after nightfall, groups of hooligans attacked hundreds of stores. On Monday, after a curfew and transport restrictions were imposed, tensions eased, but the call for new actions on Saturday keeps residents, authorities and traders on edge. Carrefour CEO Alexandre Bompard told analysts that about 50 stores of the chain were hit on the first day, many were looted; the company expects a hit to profitability of up to €200 million ($225 million) due to declining consumer confidence and rising security and logistics costs. Etam head Laurent Milchier estimated the brand's losses at €1 million in lost sales and €500,000 from theft and damage, calling on Macron to mobilise the army. Maus Freres (Lacoste) head Thierry Guibert urged the state to 'mobilise all lawful means without delay' to protect citizens, police and companies. Galeries Lafayette, hit in particular on Boulevard Haussmann and in Bordeaux, said the material and economic consequences would be significant.
Tourism Risks and Upcoming Events
UMIH Prestige head Christophe Laure reported booking cancellations at expensive Paris hotels due to the scenes of violence. Du Halgouet of Hermes noted that it is still too early to assess the impact on foreign tourists in the coming weeks. The sector is already in a downturn amid weak demand in China, and the Christmas season is beginning; robberies have also taken place in Milan in recent days. Nevertheless, two major events will take place this weekend: the Art Basel Paris fair at the Grand Palais said it has security protocols in place and is cooperating with a private security firm and the police, and on Sunday an NFL game between the Pittsburgh Steelers and the New Orleans Saints will be held at the Stade de France with heightened security — the 2022 Champions League final at that stadium ended in riots.
