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October 8, 2025
Should French Retail Be Concerned About Shein’s Store Openings?
A move by Shein to choose France as the first location to open permanent physical outlets inside famed department stores has sparked a huge uproar by the French retail community.
Until now, Shein, which is regularly accused of unfair competition by flooding the market with discount products, has only opened temporary pop-up stores as part of specific marketing initiatives.
Six stores will open beginning in early November with a shop-in-shop on the sixth floor of BHV Marais, a 160-year-old department store in the heart of Paris, followed later by five more inside Galeries Lafayette department store locations in provincial cities.
The department stores are operated by Société des Grands Magasins (SGM), which acquired BHV Marais from Galeries Lafayette in 2023 and operates the other Galeries Lafayette locations through a franchising arrangement. Shein and SGM said the Shein shops would help department stores capture younger customers and create buzz for French retail.
Frédéric Merlin, SGM’s president, said in a press release, according to Fashion Network, “This project enables us to attract a younger clientele and meet our customers’ expectations, while preserving the DNA of our stores and breathing new life into the hearts of our cities, from Paris to the provinces. It’s also a major innovation: thanks to its in-depth knowledge of online sales, Shein knows what appeals locally and can therefore tailor the offer in a unique way to each area.”
He further described the Shein partnership as a “commitment to revitalizing city centers throughout France, reviving department stores and developing opportunities for French ready-to-wear.”
“In choosing France as the location for our physical retail experiment, we recognize its position as a major fashion capital and embrace its spirit of creativity and excellence,” said Donald Tang, executive chairman of Shein. “It is natural that this journey should begin in Paris, at BHV, the cradle of modern commerce.”
Shein Faces Backlash Over Planned Openings
However, the backlash came swift, with Galeries Lafayette saying the move violates its franchise agreement and vowing to block the openings. According to Reuters, Galeries Lafayette said in a statement that it “profoundly disagrees with this decision with regards to the positioning and practices of this ultra-fast fashion brand that is in contradiction with its offer and values.”
Paris Mayor Anne Hidalgo similarly said, in a statement on LinkedIn, that the city “denounces the establishment of Shein” in the local BHV store. “This choice is contrary to the ecological and social ambitions of Paris, which supports responsible and sustainable local commerce,” Hidalgo wrote.
French retailers were already struggling to compete with Zara and H&M when Shein launched in the country in 2015.
Yann Rivoallan, head of fashion retail association Fédération Francaise du Pret-a-Porter, said in a statement, “In front of the Paris City Hall, they are creating the new Shein megastore, which — after destroying dozens of French brands — aims to flood our market even more massively with disposable products.”
Opening physical stores represents a departure from Shein’s online-only model that relies on shipping orders direct from factories to reduce costs and inventory risks. It comes as the platform is making adjustments following the end of the “de minimis” exemption in the U.S., which allowed packages less than $800 to enter the U.S. tariff-free.
The European Union is planning to do the same.
Shein has also faced frequent criticism over allegations of poor working conditions and questionable supply chain practices. In June, the French Parliament passed a law making Shein and Temu subject to environmental surcharges, advertising bans, and mandatory sustainability disclosures in a response to fashion overproduction and textile waste.
Discussion Questions
Should France’s retail community be vigorously protesting the opening of Shein’s permanent physical locations inside department stores?
Will physical Shein locations be a benefit to French consumers?
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France’s retail community has every reason to protest Shein’s move into permanent in-store locations within iconic department stores. This isn’t just about competition—it’s about preserving the values that define French retail: quality, sustainability, and craftsmanship. Allowing an ultra-fast-fashion brand with a controversial environmental and labor record to embed itself inside legacy retailers like Galeries Lafayette risks diluting those standards and undermining the very ecosystem that makes French retail distinctive. The protests aren’t protectionist; they’re a call for accountability and fair play in a marketplace where Shein’s production and pricing model already strain ethical and environmental norms.
That said, from a consumer perspective, physical Shein locations will likely offer some short-term benefits—easier returns, a chance to see and feel products before buying, and instant access to trending items without the shipping delay. For Shein, this physical presence also helps build trust and visibility with shoppers who might have avoided the brand online.
However, the broader implications go beyond convenience. If Shein’s entry accelerates a race to the bottom on price and disposability, French consumers and retailers alike will pay the long-term cost. France’s resistance here isn’t anti-innovation—it’s a defense of sustainable commerce and cultural identity in a retail world too often driven by speed over substance.
“ If Shein’s entry accelerates a race to the bottom on price and disposability”
I think it already has. What’s not being addressed in above piece is the SOCIETAL view. (“In 2024, Shein was the top online store for fashion in France, generating approximately $2.4 billion in sales, acc to ECDB.”).
Shein is doing what its going to do… steamroll into any market where the consumers are clamoring for it.
It’s a jarring conflict with govt & retail image of France as a fashion nation. Eco education + pride in local industry is needed. It’s bigger than any 1 brand. France has multi generational trades (silk, lace, fashion houses), that are not connecting with current time population. A mashup of class divide, unviable career path, and short term thinking.
The youth (or youth at heart) have latched on to the low cost/high volume/Im an influencer realm that took over the USA. (A mentality that is a sad export of the USA).
Will Shein ignore the French laws meant to tamp down its destructive business model? Transparency needed, but in itself does not solve any human rights or eco/volumetrics issue.
Well the French get excited about everything...non? Of course that’s not saying they should be, much less that it’s a negative: as a rule “the more the merrier” and I see no particular reason to make an exeception here. The many “issues” – real and perceived – can be dealt with as they arise.
The main threat from Shein – which has long had a strong online presence in France and elsewhere – remains digital. A handful of shop-in-shop concessions are no reason to immediately raise the alert level. Especially so since Shein will need to change its focus and model slightly to make physical spaces work logistically and economically. That said, other retailers need to keep watch to see if this experiment morphs into a more serious push into physical retail.
It’s not surprising France’s retail community isn’t happy about this, but in the end, shoppers will decide whether Shein’s physical stores succeed by choosing to spend there or not.
SGM’s willingness to partner with Shein—despite knowing it would outrage Galeries Lafayette and violate franchise agreements—exposes the desperation of traditional department stores for traffic and relevance. Frédéric Merlin’s language about “attracting younger clientele” and “breathing new life” is retail code for “we’re dying and need bodies in stores, values be damned.”
France passed laws in June specifically targeting Shein with environmental surcharges and advertising bans. Months later, French department stores are inviting them inside. That disconnect reveals the real crisis: traditional retailers can’t compete on price, speed, or digital experience, so they’re becoming landlords to the very brands destroying them. Paris Mayor Hidalgo can denounce it all she wants, but when department stores are the ones rolling out the welcome mat, the long game is already lost.
Je ne suis pas surpris de la reaction des distributeurs francais. That said, competition breeds innovation and often increases value for the end consumer. Though the legal wrangling may be entertaining, it will be most interesting to see the reaction of French consumers.