What: Seven regional Galeries Lafayette stores operated by SGM will be rebranded, possibly under BHV name, following a strategic split driven by disagreements over Shein’s presence.

Why it is important: This split highlights the growing tension between traditional retailers and ultra-fast fashion disruptors.

The termination of the affiliation between Galeries Lafayette and the Société des Grands Magasins (SGM) marks a significant shift in the French retail landscape, as seven prominent department stores in cities such as Angers, Dijon, and Grenoble prepare for rebranding. This decision stems from a fundamental disagreement over SGM’s plan to introduce Shein, the ultra-fast fashion giant, into these locations. Galeries Lafayette, concerned about the reputational risks and the potential erosion of its premium brand image, chose to end the partnership rather than compromise its strategic direction. The move has immediate implications for both employees and customers, who now face uncertainty regarding the future identity and offerings of these stores. The situation reflects broader industry challenges, as established retailers grapple with the disruptive influence of fast fashion brands and the complexities of managing franchise and affiliation models. Ensuring a smooth transition for staff and maintaining customer trust will be critical as SGM unveils a new identity for these stores in the coming weeks. 

IADS Notes: The split between Galeries Lafayette and SGM is emblematic of the mounting friction between legacy department stores and fast fashion entrants like Shein, which has sparked controversy and operational challenges since its attempted entry into SGM-affiliated stores in October 2025 (Fashion Network). Galeries Lafayette’s resistance to Shein’s presence, motivated by concerns over brand dilution and reputational risk, mirrors broader industry anxieties and has led to staff protests and heightened scrutiny from both the public and regulators (Fashion Network, October 2025). This episode highlights the delicate balance retailers must strike between innovation and brand integrity in today’s evolving market.

Galeries Lafayette ends affiliation with SGM over Shein’s presence