Shein Opens First Stores in France, Faces Criticism from Retailers and Politicians

Chinese online fast-fashion retailer Shein is taking a big step by opening its first permanent stores in France this November. The company will launch shops in the BHV department store in central Paris and in Galeries Lafayette department stores in five other French cities. This move is Shein’s first permanent bricks-and-mortar presence in France, after previously running only temporary pop-up stores.

However, the decision has sparked strong criticism from French retailers, local politicians, and officials who worry about the impact on local businesses and the environment.

Shein’s New Stores and Business Plan

Shein is known for selling very cheap clothing, such as dresses for 12 euros and jeans for 20 euros, delivered directly from factories in China to customers worldwide. Its online-only business model has helped it avoid unsold inventory costs, keeping prices low.

Opening physical stores is a big change for Shein. The company will need to store inventory in the shops, hire staff, and manage additional costs. This is very different from its online operations, which rely on shipping products directly to customers.

Despite these challenges, Shein executives believe the stores will attract young shoppers, including those who might buy a Shein item along with more expensive designer goods in the same visit.

Opposite

The launch

Gallery, which is franchising the Shein stores, said it does not agree with the move. The group stated that Shein’s fast-fashion business model goes against its own values and could violate the franchise agreement.

Wellalso estop, support local businesses, and sell locally-made products.

Yann Rivoallan, head of the French Loan Federation, criticized the move, saying Shein has already harmed many French brands and will increase the presence of “disposable products” in the market.

French fast-fashion retailers have struggled to compete with international brands like Zara and H&M. Earlier this year, several smaller chains such as Jennyfer and NafNaf entered insolvency proceedings, showing the pressure on local businesses.

Challenge

While Shein’s online model has been successful, running physical stores introduces new problems:

Inventory Costs: Shein will need to maintain stock in the stores, unlike online-only sales.

Operating Expenses: Rent, staff salaries, and other costs will add to the company’s budget.

Regulations:Shein

Shein’s move comes as the company adapts to changes in other major markets. In the United States, the exemption from customs duties for low-value parcels is ending, and the European Union plans to follow a similar rule.

Planned Store Location

Shein’s first store will open on the sixth floor of BHV in Paris in early November. Following that, stores will open in Gals in:

• Dijon
• Grenoble
• Reims
• Limoges
• Angers

According to Shein’s Executive Chairman, Donald Tang, the brand is especially popular in provincial and rural areas, where customers have fewer options for affordable fashionable clothes.

Disclaimer

Shein’s entry into permanent retail in France marks a new chapter for the fast-fashion company. While the stores may attract young shoppers and boost the brand’s presence, the move also raises concerns about the future of local retailers, sustainable commerce, and consumer culture in France.

As the launch approaches, the debate between global fast-fashion growth and support for local businesses continues. French consumers, retailers, and policymakers will be watching closely to see how Shein’s physical stores impact the market.