Shein Sparks Debate in France with BHV Collaboration, Galeries Lafayette Tensions

Shein’s physical debut in Paris unleashes a historic pulse in France. The Chinese giant accelerates its offensive in the market, where it recently launched an ephemeral store and closed a controversial distribution agreement with the historic Pimkie. This Wednesday, Shein announced its most ambitious offensive in Europe with a deployment plan in the physical channel. The company will open in November its first permanent sales space in the world on the sixth floor of the BHV Marais department store, an emblem of Parisian retail. This premiere will be followed by five more spaces in Dijon, Reims, Grenoble, Angers and Limoges, in Galeries Lafayette centers managed in partnership with Société des Grands Magasins (SGM).

Shein has chosen France as the laboratory for its final leap into physical retail. “It is natural for this journey to begin in Paris, at BHV, the cradle of modern retail, before expanding to other cities,“ defended Donald Tang, executive chairman of the group via a statement. The partnership with SGM includes the creation of 200 jobs and, according to Shein, represents “a commitment to revitalizing city centers and restoring department stores.“

In an interview with Le Parisien newspaper, Frédéric Merlin, president of the SGM group, which manages seven affiliated Galeries Lafayette in the provinces as well as several shopping centers, welcomed the exclusive deal with Shein, which he said was “a way to create media impact.“ The economic difficulties the company is going through also point to be one of the causes behind the controversial agreement.

The announcement was presented as a world first involving two of the oldest names in French retailing. However, the reaction of the Galeries Lafayette Group, chaired by Nicolas Houzé, was swift. The former owner of the BHV Marais responded forcefully: “Galeries Lafayette refuses the installation of Shein in the five affiliated stores of the SGM group”.

Shein will open its first permanent physical space in Paris through BHV Marais

The group pointed out that the agreement violates the contractual conditions of affiliation and contradicts the values of the ensign. The rejection leaves up in the air the viability of openings in the provinces and marks a direct clash between SGM, which defines itself as an innovative operator, and the parent company of Galeries Lafayette, which sees Shein as a threat to its image.

Fashion federations also spoke out immediately. The Fédération Nationale de l’Habillement, which brings together independent retailers, denounced that, following the agreement with Pimkie, it is now “the BHV, a Parisian institution since 1860, and Galeries Lafayette in the provinces that are turning to ultra fast fashion, confirming an alarming lack of imagination and professionalism.“ For the federation, these brands, “which have contributed so much in the past to France’s prestige and creativity, now choose to associate themselves with the most reprehensible in the fashion industry”.

More harsh was the reaction of Yann Rivoallan, president of the Fédération Française du Prêt-à-Porter Féminin, who described the project as a “megastore Shein in front of City Hall.megastore Shein in front of Paris City Hall” and accused SGM’s managers of “betraying decades of relationship with premium French brands”. According to the representative, the operation jeopardizes the credibility of the department store and the survival of local savoir faire. Several French brands have shown their disagreement with the move through social networks, threatening to end their partnership agreements with the Parisian department store.

The news came in the middle of Paris Fashion Week, when the capital concentrates the media attention of the global industry and the eye on the transformation of luxury. The choice of timing is no coincidence. Shein sought to place itself at the heart of the debate on the future of fashion, highlighting the tension between exclusivity and mass scale.

The Chinese giant has accelerated its market offensive with a strategic alliance with Pimkie

The physical landing will take place in an adverse regulatory context. France has passed this year in a law against ultra fast fashion that imposes restrictions on advertising, financial penalties and stricter traceability requirements. In addition, Shein and Temu are under scrutiny for taking advantage of customs loopholes that allow small packages to be imported duty-free, a competitive advantage denounced by the local trade.

Accused of opaque social practices and of contributing to pollution through the colossal volume of its collections, the company is facing mounting pressure in Brussels and Paris. French and European federations have warned that Shein’s expansion represents “unfair competition” against brands subject to EU regulations.

For Shein, its arrival in the BHV Marais is a strategic move to legitimize its position in the European market and to get closer to local consumers. The sector, for its part, experiences the landing in one of the iconic spaces of the industry as a threat to the identity of national fashion. The struggle with Galeries Lafayette, the political pressure and the rejection of the federations make this debut a high-risk test. Shein, however, seems ready to apply the famous “divide and conquer” logic.