Shein's first physical stores in French malls spark a backlash from local time-honored brands.

Chinese Fast-Fashion E-Commerce Giant Shein to Open First Physical Stores in French Malls in November, Triggering Backlash from Local Established Brands

Shein, China’s leading fast-fashion e-commerce giant, will open its first physical stores in French malls in November this year—a move that has sparked a backlash from local established brands.

According to reports from Reuters and Bloomberg, Shein has reached an agreement with Société des Grands Magasins (SGM), a French mall owner, to open a physical store in Paris’s downtown BHV Marais department store in November. Prior to this, Shein had only operated pop-up stores in France.

On Wednesday (October 1), SGM stated that Shein has agreed to open stores within Galeries Lafayette department stores in five French cities: Dijon, Grenoble, Reims, Limoges, and Angers.

In 2021, Galeries Lafayette sold the operations of its department stores in these five cities (which were previously managed by SGM) to SGM under a franchise agreement, though it retained the right to use the "Galeries Lafayette" brand name.

Galeries Lafayette has expressed opposition to SGM’s decision to bring in Shein, arguing that Shein’s positioning and practices are contrary to Galeries Lafayette’s values and a violation of their franchise agreement. It has therefore stated it will block the opening of these Shein stores.

In response, SGM claimed that its decision is consistent with the agreement it reached with Galeries Lafayette. Founded in 2018, SGM is a French real estate company that also operates department stores.