Banner of Frederic Merlin of SGM group and Donald Tang, executive president of the Shein group, outside the BHV department store in Paris. (Photo by Jerome Gilles/NurPhoto via Getty Images)
NurPhoto via Getty Images
Less than a year after Shein celebrated the opening of its first permanent European store inside one of Paris’ most famous department stores, the controversial experiment is coming to an abrupt end.
BHV Marais has confirmed that the Shein concession will close before Christmas, ending a partnership that lasted just seven months after BHV’s recent change in ownership meant an about face on the collaboration.
The BHV partnership was always intended to be symbolic. Located in the heart of the Marais district, the department store has been a fixture of Paris retail for more than 160 years and has spent decades cultivating a reputation for premium fashion, design and homeware.
For Shein, securing space inside such a prestigious retail destination represented a major endorsement as it sought to evolve beyond its hugely successful online business and a series of popular pop-up stores across Europe.
Instead, the concession became a lightning rod for criticism. Environmental campaigners, politicians and sections of the French fashion industry questioned whether one of France’s best-known department stores should be promoting an ultra-fast-fashion retailer.
A host of established brands reconsidered their presence in BHV following Shein’s arrival, turning what had begun as a commercial partnership into a reputational challenge for the department store.
That all came to an end in June when Société des Grands Magasins (SGM) accepted a takeover offer by Karl-Stéphane Cottendin, the former CEO of BHV and the SGM Group, who teamed up with Valérie Chaleyssin, Medy Ty and Élodie Nho to acquire the business operations of BHV Marais and Parly 2.
While BHV Parly 2 has been included in the takeover, the seven former Galeries Lafayette stores outside Paris, now operated under the BHV brand, remain within the SGM group, where five stores currently still feature a Shein section.
Cottendin said Shein would “ideally” leave the store by Christmas, describing the decision to allow the retailer to open in BHV as a “strategic error”.
Shein Remains Outside Paris
SGM director Frederic Merlin also made clear that existing Shein concessions elsewhere in France will continue until contractual agreements expire pending a long-term review, as he acknowledged having made “mistakes”, adding that the sale of BHV was a “genuine plan for an effective takeover by serious people”.
For its part, Shein struck a conciliatory tone, thanking customers for their support during its time at BHV and stressing it respected the decision, while it described the project as temporary, as the company added that it remains committed to the French market.
Far from a showcase, the Shein store became a lightning rod for protest. (Photo by Jerome Gilles/NurPhoto via Getty Images)
NurPhoto via Getty Images
For other European retail landlords, the BHV experience may prompt difficult questions. Chinese retailers undoubtedly generate footfall and appeal to younger consumers, but they may also bring reputational risks that extend far beyond individual lease agreements.
Around 100 brands left the BHV Marais following Shein’s arrival, with management blaming this either over opposition to the Asian brand or over unpaid invoices linked to IT systems.
Chinese Retailers Under Pressure
It also represents a more challenging time for Chinese brands in Europe. At the start of the month the European Union introduced a circa $3.50 fee on low-value ecommerce imports from outside the bloc.
Meanwhile, in France lawmakers have approved proposed legislation introducing fines for companies producing vast volumes of low-cost apparel while banning advertising and influencer marketing for businesses falling within the new definition.
In June Shein was hit with fines totalling more than $26 million over issues relating to product traceability, environmental labeling and delivery times, taking the total fines imposed against the Asian fashion giant in France to around $240 million.