Shein, one of the global eCommerce heavyweights, has announced its commitment to physical retail. The company will inaugurate its first stores in France, a curious choice considering the ongoing legal dispute the fast fashion giant is facing with the country’s authorities.
Until now, Shein’s playing field had always been the online world, and the company had only opened temporary pop-up stores as part of specific marketing initiatives. This decisive step towards an omnichannel model will represent a significant shift from the current business model of the marketplace.
Shein will inaugurate its first physical store in November, and the chosen location is the sixth floor of the iconic BHV Marais department store in Paris.
Donald Tang, Executive Chairman of Shein, stated: “We recognize the role of France as the global fashion capital. It is natural that this journey should begin in Paris, at BHV, the cradle of modern commerce, before expanding to other cities.”
This will later be followed by five additional openings at centers belonging to Galeries Lafayette in the cities of Dijon, Reims, Grenoble, Angers, and Limoges. These points of sale are part of the seven stores that Société des Grands Magasins (SGM) manages through a franchise agreement with Galeries Lafayette.
Frédéric Merlin, President of SGM, has expressed enthusiasm regarding the agreement reached with Shein, highlighting it as an opportunity to attract a younger clientele. However, Galeries Lafayette does not view favorably the idea that its offerings, based on luxury and quality, might be blended with fast fashion.
Through an official statement, Galeries Lafayette affirmed that the opening of Shein stores in spaces managed jointly with SGM would violate the franchise agreement and that it would prevent these openings from taking place. “Galeries Lafayette is deeply opposed to this decision regarding the positioning and practices of this ultra-fast fashion brand, whose approach is at odds with our offerings and our corporate values.”
Galeries Lafayette will not be the only resistance Shein encounters in France, a country that is already shaping a legislative initiative popularly known as the “anti-Shein law”.
Anne Hidalgo, Mayor of Paris, spoke out on LinkedIn to condemn the upcoming opening of Shein in BHV: “We express our deep concern about BHV’s decision to host, in November, the first permanent Shein store in France. This choice is contrary to the ecological and social ambitions of Paris, which supports responsible and sustainable local commerce.”
For his part, Yann Rivoallan, president of the Fédération Française du Prêt-à-Porter, the French fashion retailers’ association, declared: “In front of Paris City Hall, the new Shein megastore is being established, which, after destroying dozens of French brands, now intends to flood our market even further with disposable products.”
It is no surprise that the country perceives Shein’s commitment to physical commerce as an ongoing threat to its local merchants and brands, given the significant impact the company’s online power has already had on them. A report from the French Fashion Institute (IFM) revealed that Amazon, Shein, and Temu accounted for 24% of online fashion sales in France during the first quarter of 2025. Moreover, this trio represented 7% of the country’s total apparel consumption, considering all sales channels.
French authorities and organizations have already taken significant measures to reduce the power of eCommerce giants, especially those focused on fast fashion and ultra-low prices (such as Shein, Temu, or AliExpress). For example, through the “anti-Shein law”, legislation opposed to the fast fashion-based model, its harmful environmental impact, and its negative effects on national businesses.
The legislative proposal was approved unanimously by the National Assembly (lower chamber) and was subsequently passed by the Senate (upper chamber) in June 2025. Now, the text must be reviewed by a bicameral mixed committee and afterward, French authorities must formally notify the final text to the European Commission to ensure its compliance with European Union regulations.
Furthermore, in June, a coalition of more than 230 brands and 16 industry federations, led by the French Retail Council (CDCF) and the French Trade Confederation (CCF), sent an open letter to the Executive accusing these companies of violating European regulations, encouraging excessive consumption, environmental pollution, and “unfair” competition. Among other actions, the signatories are demanding the déréférencement: the removal of their websites from search engines or marketplaces.
Shortly afterward, in July, the country’s antitrust authorities fined Shein 40 million euros for “deceptive commercial practices.”
Until now, Shein had based its success on its strategy of extremely low prices, a strategy that was facilitated by its online business model. Specifically, the marketplace employed a strategy based on a made-to-order production model, minimizing costs throughout the supply chain, implementing hyper-segmented advertising, and, of course, individual shipments that benefited from customs regulations and “de minimis” exemptions.
However, the “de minimis” regulations that had greatly benefited Shein’s business have begun to change dramatically. At the end of August this year, the President of the United States, Donald Trump, signed an executive order that ended the “de minimis” exemptions. As a result, low-value merchandise (up to $800) has shifted from being exempt from tariffs to being subject to them.
Likewise, the European Union is also considering changes to its regulations in this regard. While the EU does not refer to its exemption as “de minimis,” it does have its own duty-free rule that applies to parcels valued below 150 euros. The proposal includes imposing a fee of €2 for each package shipped from outside the EU and valued at less than 150 euros. The goal is to curb and regulate the massive importation of low-value shipments and to level the playing field between European and non-EU retailers.
These changes to the rules of the game will penalize one of Shein’s key business pillars, and the company will need to adapt to this new scenario. Apparently, this adaptation will coincide with its embrace of omnichannel strategies and its venture into physical retail. It is a surprising move, as it will require the Asian giant to take on new operating costs such as the payment of rent, store maintenance, and inventory management, thus reducing the flexibility offered by its made-to-order model.
Photo: Depositphotos
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