What: Shein is entering the French physical retail market through a partnership with SGM (Société des Grands Magasins), opening permanent stores at BHV Marais and several franchised Galeries Lafayette locations.

Why it is important: Shein’s entry into physical retail comes amid heightened regulatory scrutiny and reputational risks, underscoring the challenges and opportunities facing fast-fashion in Europe. 

Shein’s launch of its first permanent physical retail spaces in France, beginning with BHV Marais in Paris and expanding to regional Galeries Lafayette stores, marks a significant evolution in the brand’s strategy. This move is positioned as a commitment to revitalising city centres and attracting a younger clientele, leveraging Shein’s deep understanding of online sales data to tailor local assortments. The partnership with Société des Grands Magasins (SGM) not only supports the ongoing reinvention of department stores but also reflects broader trends in the retail sector, where collaborations between digital disruptors and traditional retailers are becoming increasingly common. However, Shein’s expansion is accompanied by considerable controversy, including accusations of unfair competition, environmental harm, and labor violations, as well as a record €40 million fine in France for deceptive pricing. These challenges highlight the complex regulatory environment and reputational risks that fast-fashion brands must navigate as they seek to blend digital and physical retail.

IADS Notes: Shein’s physical retail debut at BHV Marais aligns with SGM’s broader transformation strategy for department stores, as outlined in June 2025 (Fashion Network: “Société des Grands Magasins (SGM) has a new plan to acquire BHV Marais’ property”). The brand’s rapid growth in France, with 23 million customers and strong rural penetration reported in March 2025 (Journal du Net: “Who are Shein’s customers in France?”), has disrupted traditional retail models. Yet, this expansion is set against a backdrop of mounting regulatory scrutiny, including the €40 million fine in July 2025 (Fashion Network: “Shein fined €40m for deceptive pricing in France”), and reputational risks highlighted by the Pimkie-Shein partnership in September 2025 (Fashion Network: “French brand Pimkie partners with Shein to accelerate its digital transformation”). Globally, Shein’s disruptive digital-first model, as seen in South Africa in August 2025 (Inside Retail: “Shein and Temu outpace global retail giants in South Africa’s fashion market”), is now facing increased regulatory intervention.

Shein to launch first permanent physical stores in French department stores