Shein's Bold Move: Bricks-and-Mortar Launch in France Sparks Backlash

Online fast-fashion giant Shein is set to open its first permanent physical stores in France this November, sparking criticism from French retailers and politicians. The expansion, in partnership with Société des Grands Magasins, has been met with opposition for contradicting local sustainable commerce goals and existing franchise agreements.

Online fast-fashion powerhouse Shein is charting new territory by opening its first permanent physical retail spaces in France. Slated for a November launch, the stores will be located in the BHV department store in Paris and five additional Galeries Lafayette venues across the country. This unprecedented expansion, executed in partnership with department store owner Société des Grands Magasins (SGM), has elicited strong reactions from industry stakeholders.

The planned openings have drawn criticism from influential figures, including Paris Mayor Anne Hidalgo, who argue that the move contradicts efforts to support sustainable local businesses. Galeries Lafayette has expressed opposition, stating that hosting Shein stores violates their franchise agreements and contradicts their brand values. Despite the backlash, SGM President Frédéric Merlin sees this as an opportunity to draw a younger clientele to department stores.

Shein's transition to physical retail is a significant shift from its successful online-only model, raising concerns over operational costs due to inventory requirements. The company's move comes amidst changing international regulations on low-value e-commerce parcels, signaling shifts in its business strategy as it adapts to evolving market landscapes.

(With inputs from agencies.)