PARIS — Galeries Lafayette is to shutter its department store in Lille, France, a company spokeswoman said.

The unit employs about 130 people.

Last March, Galeries Lafayette said it would close money-losing stores in Béziers in the South of France and in Thiais, near Paris, affecting fewer than 300 employees.

At the time, it said the Lille location, unprofitable since it opened in 2007, would also close unless it succeeded in negotiating a more favorable lease.

Retailers in France are facing fierce online competition and the withering spending power of French consumers.

The department store operator has said it must reduce heavy fixed costs at its head office, also in consultation with works councils as is required in France.

It is understood Galeries Lafayette aims to reduce the head count at its headquarters by 90, out of a total of 1,100 employees, via a voluntary redundancy program, as reported.

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