Business16 June, 20262 min read
BHV Marais Ends Shein Partnership After SGM Sells Paris Outlet, Shein Expected To Leave By Christmas
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BHV Marais ends Shein partnership after selling the Paris outlet to a group of executives. Shein expected to depart the Paris store by Christmas.
BHV Marais ends Shein
French department store BHV Marais will end its partnership with Shein after its operating company said Tuesday (Jun 16) it was selling the Paris outlet, with Shein expected to leave the store by Christmas. CNA reported that BHV Marais’s decision followed criticism of the deal after Shein in November opened its first permanent physical shop in BHV’s flagship store, sparking outcry over fast-fashion and environmental impact.
CNA said the operating company SGM has sold the store at a loss to a group of executives including outgoing SGM CEO Karl-Stephane Cottendin, who will step down as SGM’s chief executive following the deal. CNA also reported that a second BHV store west of Paris will come under new management, while SGM will retain control of seven other locations, five of which have welcomed Shein this year.
Strategic error and fallout
CNA quoted Cottendin describing the decision to allow Shein to open in BHV as a "strategic error" and said he would step down as SGM’s chief executive following the deal. CNA said SGM director Frederic Merlin acknowledged having made "mistakes" and called the sale of BHV a "genuine plan for an effective takeover by serious people".
Plataforma Media said the owners of BHV now consider the partnership to have been a “strategic mistake” that severely backfired, and that the presence of the ultra-fast-fashion brand caused several other retailers to abandon the department store entirely. Plataforma Media added that this closure policy will also apply to other BHV locations in various cities across France where the Chinese multinational had established physical retail spaces.
Regulatory pressure and fines
CNA said France imposed two fines on Shein totalling more than 22 million euros (US$26 million), citing problems with product traceability, environmental labelling and delivery times. CNA reported that the penalties bring the total fines imposed by France against the Asian fashion giant to more than 210 million euros.
Plataforma Media said Shein previously faced legal trouble in France after the French government filed a formal complaint attempting to suspend its online activities, triggered when local authorities detected that the platform was actively manufacturing and selling child-like sex dolls. South China Morning Post reported that SGM sold the store to a group of executives led by Karl-Stephane Cottendin and said the cooperation could see Shein’s first physical store closed by this Christmas after other brands pulled out in protest.