Shein Opens First Physical Stores in France, Faces Backlash from Retailers and Officials

Post by : Saif Ali Khan

Shein, the popular online fast-fashion brand, is set to open its first permanent physical stores in France this November. The move comes as part of a deal with department store owner Société des Grands Magasins (SGM). The stores will be located in central Paris at the BHV department store and in five other Galeries Lafayette department stores in cities including Dijon, Grenoble, Reims, Limoges, and Angers.

Until now, Shein has been known for temporary pop-up stores that were mainly for marketing purposes. With these permanent stores, Shein is taking a big step into traditional retail. According to SGM president Frédéric Merlin, the new stores aim to attract younger customers. He said, “A customer might buy a Shein item and a designer handbag on the same day,” showing that Shein hopes to appeal to a wide audience.

Retailers and Officials Criticize Shein’s Move

Not everyone is happy with Shein’s expansion into physical stores. Galeries Lafayette, which owns the stores through a franchise agreement, strongly opposed the move. In a statement, the company said, “We profoundly disagree 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.” They are planning to stop Shein from opening stores in their locations.

Paris Mayor Anne Hidalgo also criticized the plan. She said it goes against Paris’ goals of promoting “sustainable local commerce” and supporting local businesses. Hidalgo shared her concern on LinkedIn, calling the new store a “challenge for our local economy.”

Yann Rivoallan, head of the Fédération Française du Prêt-à-Porter, a French fashion retail association, added that Shein’s entry could harm local brands. He said, “They aim to flood our market with disposable products, after already affecting dozens of French brands.”

Many French retailers are already struggling. Before Shein, brands like Zara and H&M dominated the market with affordable clothes. The arrival of Shein, known for extremely low prices, added more pressure. Earlier this year, several French fast-fashion retailers such as Jennyfer and NafNaf went into insolvency.

Shein’s Business Model and Challenges

Shein is famous for selling clothes at very low prices—dresses at around 12 euros and jeans at 20 euros. Its online-only model allows it to ship directly from factories in China to customers worldwide. This approach keeps inventory costs low and avoids surplus stock that often challenges traditional retailers.

However, opening physical stores is a big change. Shein will now need to maintain inventory in stores, which increases costs and operational challenges. This shift comes as Shein adapts to changes in its biggest market, the United States, where a duty exemption for low-value parcels is ending. The European Union is also planning to remove similar exemptions.

Shein’s first French store will open on the sixth floor of the BHV in Paris in early November. Later, the brand will expand to other department stores. Donald Tang, Shein’s Executive Chairman, said the brand is especially popular in provincial and rural areas, where customers have fewer options for fashionable clothes. He believes physical stores will strengthen Shein’s presence and reach more shoppers.

The Reaction from French Market

Shein’s physical store launch highlights the tension between global fast-fashion brands and local markets. Critics say that ultra-low prices and mass production can threaten local retailers and encourage unsustainable consumer habits. Supporters argue that affordable fashion gives more choices to customers, especially younger generations.

French lawmakers are also taking action. They have backed a draft law to regulate fast fashion, which could include restrictions on advertising for brands like Shein. The new stores, therefore, could face not just public criticism but also legal challenges in the future.

Disclaimer

This article is based on public reports and statements from Shein, French retailers, and government officials. It aims to provide factual information about Shein’s expansion into France and the market reactions. Opinions expressed by officials or organizations mentioned in the article are their own and do not reflect the views of Gccnews24.

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