Lancôme Beijing APM Flagship Shuts on Lease Expiry; L'Oréal H1 2026 Sales €23.77 Billion

L'Oréal confirmed that Lancôme's Beijing APM store officially ceased operations on 30 July 2026 due to lease expiry. The store, which opened during the National Day holiday in 2020, covered 320 square metres and was Lancôme's largest physical outlet in China. It had been positioned as a brand retail incubator, serving functions such as new product launches, brand image display and in-depth consumer experiences. A site visit on 6 August showed the original store had been replaced by hoardings, with all interior fixtures removed. APM mall staff said a new brand had taken over the space and would begin fit-out soon. Lancôme customer service said 18 counters remain operational in Beijing.

L'Oréal Group's first-half 2026 results showed sales of €23.77 billion, with adjusted like-for-like growth of 6.5%. The luxury division grew 5.1% on a like-for-like basis, outperforming the global premium beauty market. In North Asia, L'Oréal's China growth was approximately three times the average market growth rate, with the luxury division the main contributor to regional growth. On a channel basis, e-commerce accounted for more than 50% of North Asia revenue, becoming the largest sales channel. Asian travel retail continued to be a drag, with recovery lagging the rebound in outbound passenger traffic.

Since 2022, L'Oréal has established an output evaluation mechanism for physical outlets. From 2023 to 2024, it further prioritised channel quality over outlet count, no longer pursuing store network expansion. Instead, resources are concentrated on high-productivity locations, while underperforming outlets are dynamically optimised. This strategy covers all brands under the luxury division. Mainland China's local counters and e-commerce channels are the core growth engines for luxury brands, with physical layout shifting from scale expansion to efficiency deepening.