What: Galeries Lafayette has blocked Shein’s entry into its SGM-affiliated stores, citing brand values and contractual obligations.

Why it is important: Galeries Lafayette’s stance highlights the risk of alienating premium brands and damaging long-standing retail relationships.

Galeries Lafayette’s firm opposition to Shein’s entry into its SGM-affiliated provincial stores marks a critical moment for the French retail sector, reflecting the heightened sensitivity around brand image and the preservation of long-standing industry relationships. The group’s leadership, under Nicolas Houzé, swiftly rejected the installation of Shein spaces, emphasizing that ultra-fast fashion is incompatible with the values and contractual standards of the Galeries Lafayette brand. This move comes amid a wave of criticism from French fashion federations, who argue that such partnerships threaten the creative and qualitative heritage of French retail. The controversy echoes recent industry turbulence, including the backlash and legal disputes surrounding Pimkie’s alliance with Shein, which led to Pimkie’s expulsion from retail associations. These events underscore the operational and governance challenges inherent in multi-brand retail networks, where franchisees and franchisors must navigate complex affiliations and safeguard their reputations. Ultimately, Galeries Lafayette’s decision signals a broader industry pushback against ultra-fast fashion’s disruptive influence and a renewed commitment to protecting premium brand relationships.

IADS Notes: The dispute between Galeries Lafayette and SGM over Shein’s entry into affiliated department stores is emblematic of the broader tensions shaping the French retail landscape. Shein’s push for permanent physical spaces, as reported in October 2025 (“Shein to launch first permanent physical stores in French department stores”, Fashion Network), has ignited controversy not only due to its ultra-fast fashion model but also because of the reputational and regulatory risks it brings, including a €40 million fine for deceptive pricing in July 2025 (“Shein fined €40m for deceptive pricing in France”, Fashion Network). The backlash from industry federations mirrors the legal and reputational turmoil seen in the Pimkie-Shein partnership in September 2025 (“Pimkie and Shein Partnership: Mulliez family announces legal action”, Le Figaro; “Pimkie expelled from French retail associations”, Fashion Network), which resulted in Pimkie’s expulsion from retail associations and underscored the sector’s resistance to alliances with controversial e-commerce giants. These developments highlight the operational and contractual complexities faced by department store networks, as illustrated by the April 2025 indictment of a Galeries Lafayette franchisee partner (“Galeries Lafayette’s franchisee partner indicted for misuse of corporate assets”, Fashion Network), and raise concerns about the potential erosion of relationships with premium brands that underpin the value and image of iconic French retail institutions.

Galeries Lafayette Group wants to block Shein’s entry into its SGM-affiliated stores