Shein to Open First Physical Stores in France, Sparking Retail Backlash
Shein, the fast-fashion giant, will open its first permanent brick-and-mortar stores in France this November. The move comes through an agreement with Société des Grands Magasins (SGM), which owns and operates several department stores.
Shein’s Retail Expansion in France
The first store will open on the sixth floor of BHV in central Paris, followed by outlets in Galeries Lafayette department stores across Dijon, Grenoble, Reims, Limoges, and Angers. Until now, Shein has only operated temporary pop-up shops worldwide.
SGM president Frédéric Merlin said the launch would attract younger customers. He argued that shoppers could purchase both a Shein item and a luxury designer handbag on the same visit.
Galeries Lafayette Pushes Back
Galeries Lafayette, which franchised its name to SGM, opposes the move and insists it violates the franchise agreement. In a statement, the group said:
“Galeries Lafayette 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.”
The company plans to take steps to stop the opening.
Criticism From French Retailers
The expansion has fueled criticism from French retailers and lawmakers. Yann Rivoallan, president of the Fédération Française du Prêt-à-Porter Féminin, warned that Shein’s presence would “flood the market with disposable products,” further harming local brands.
Shein is already under pressure in France, where lawmakers have proposed new fast-fashion regulations that could restrict advertising and marketing.
Struggling Competition
French retailers have been losing ground to global fast-fashion players such as Zara and H&M. Brands like Jennyfer and Naf Naf entered insolvency earlier this year, unable to compete with Shein’s ultra-low prices.
Shein sells €12 dresses and €20 jeans, using a direct-to-consumer model that ships products from China without duties thanks to customs exemptions on low-value parcels.
A Shift in Business Strategy
Opening physical stores marks a major departure from Shein’s online-only business model, which has helped it keep unsold inventory low. Physical outlets will require new logistics, storage, and added costs.
The expansion also comes as Shein adapts to policy changes in its key markets. The U.S. has ended its “de minimis” duty exemption, and the European Union is preparing to do the same.
Shein’s Executive Chairman Donald Tang noted that the brand is especially popular outside major cities, in provincial and rural areas where fashion choices are limited.
