France Deploys Reinforcements as Luxury Boutiques Brace for Renewed Protests

France is bolstering its law enforcement presence across cities to manage anticipated new protests following the lifting of demonstration bans in many areas. President Emmanuel Macron, upon his return from a Gulf tour, convened a meeting with intelligence services at the Elysee Palace on Thursday morning. This meeting addressed concerns that authorities may have misjudged the handling of the violence and looting that occurred over the past week. Jean-Didier Berger, minister delegate to the Minister of the Interior, announced that the number of police officers deployed will be 20% higher than the previous weekend. Protests are scheduled for Paris on Saturday.

"We have cancelled some vacations. We have called back people who were supposed to be on vacation but will not be," Berger told BFMTV. He also confirmed that officers have been granted permission to use weapons such as stun grenades, a decision that had faced scrutiny after a teenager lost his hand while handling one during a prior demonstration.

Businesses in Paris have been advised by police chief Patrice Faure to enhance their own security measures. This includes hiring private guards, potentially with canine units, and implementing alarm systems. Rallies are also planned for Thursday in several cities, including Lille.

Across Paris's prime shopping districts, luxury boutiques are showing the damage from last weekend's riots, which were widely documented on social media. Owners are now preparing for the possibility of further unrest. The Louis Vuitton flagship store on the Champs-Elysees and the Christian Dior Couture emporium on Avenue Montaigne, a hub for high-end retail, have both installed metallic grates over their windows. While these stores avoided significant damage last weekend, others were not as fortunate.

Along Rue Saint-Honore, near the presidential palace, windows and doors are boarded up on numerous shops. Mobs on Saturday broke into and looted establishments including Burberry, Christian Dior perfumes, and Guerlain. These three boutiques, along with a Salomon sportswear store on Boulevard de la Madeleine, remain closed after being ravaged. The Hermes boutique on Avenue George V sustained broken windows, while its store in Marseille was severely ransacked and "won't reopen any time soon," according to chief financial officer Eric du Halgouet. Hermes has since reinforced its security.

The recent violence erupted after protests last Saturday drew over half a million people nationwide. As night fell, groups of masked rioters targeted hundreds of shops, smashing windows, destroying property, and stealing merchandise. While curfews and transport restrictions imposed on Monday helped to quell the turmoil, the call for further protests this Saturday has left residents, authorities, and shopkeepers on edge.

The audacious attacks and perceived inadequate police response drew criticism from retailers, contributing to a profit warning from Carrefour SA, a major grocer. Approximately 50 Carrefour stores were affected on the first day of rioting, with many looted and damaged, as reported by chief executive Alexandre Bompard. Mr. Bompard noted that the unrest is negatively impacting consumer confidence, deterring shoppers, and increasing costs for security and logistics, with Carrefour anticipating a profitability hit of up to €200 million ($225 million).

Laurent Milchior, head of the lingerie brand Etam, stated that the weekend's destruction resulted in €1 million in lost sales and an additional €500,000 from stolen goods and store damage. "If it's a one-off, it'll work out, but the issue is if it lasts," he commented, referring to the potential for repeated violent protests. Mr. Milchior urged President Macron to deploy the army, arguing that anti-riot police and other forces were outmatched.

Thierry Guibert, CEO of Lacoste owner Maus Freres SA, called for the state to "mobilise without delay all legal means it has to put an end to the violence, protect our citizens, our police officers, our workers and our companies." Galeries Lafayette reported significant material and economic consequences after damage and looting at its locations, including Boulevard Haussmann in Paris and Bordeaux.

In response to the attacks, Prime Minister Sebastien Lecornu pledged "massive" security measures for this Saturday's protests during remarks to the National Assembly. Interior Minister Laurent Nunez is expected to provide further details on Thursday.

The economic impact of the rioting is expected to affect the tourism industry, particularly if the unrest continues. Christophe Laure, head of UMIH Prestige, which represents luxury hotels, indicated that images of violence have led to cancellations at high-end Paris hotels. Well-off guests at these establishments are often patrons of local luxury boutiques. Mr. du Halgouet of Hermes expressed uncertainty about the long-term impact on foreign tourist clientele.

With already weak demand for luxury goods in China and a broader industry slump, a sustained decline in tourist purchases in France would occur at a challenging time, especially with the Christmas shopping season commencing. Milan, another European luxury shopping hub, has also experienced looting recently.

Two significant events are proceeding this weekend. The Art Basel Paris fair at the Grand Palais stated it has "extensive protocols in place" and collaborates closely with private security and Paris police. On Sunday, the National Football League will host a game between the Pittsburgh Steelers and the New Orleans Saints at Stade de France, where security will be heightened.