Lafayette defies French slump to post profits rise

French retail group Galeries Lafayette is fighting back against a sluggish economy, and has reported an increase in profits.

Operating profits at the business climbed by 2.3 per cent to EUR284.6 million (£189.9 million) last year.

This included the eponymous department store chain, food and fashion chain Monoprix and services arm LaSer.

'Although the economic environment remains uncertain, this progress in results should continue in 2004,' the retailer said in a statement.

Galeries Lafayette has suffered from depressed consumer confidence in France - especially in Paris, where tourist numbers have fallen. Sales increased by 1.1 per cent to EUR5.5 billion (£3.67 billion) for the year.