Shein’s first physical store exposes department stores’ struggle
The Chinese fast-fashion giant Shein has opened its first bricks-and-mortar store in Paris, spotlighting the existential challenges facing traditional department stores in the era of ultra-fast fashion.
Shein launched its physical shop within the flagship BHV department store on Rue de Rivoli earlier this month, sparking an outcry from lawmakers and competitors. Critics argue that Shein’s low-cost business model undermines French shopping streets and puts local retailers at risk, News.Az reports, citing Reuters.
For BHV, known for its wide range of goods, the move aimed to attract younger shoppers who favor online platforms for fashion and beauty products. Foot traffic jumped 50% on launch day, and around a quarter of Shein buyers also shopped elsewhere in the store.
“Every day we hear that physical retail is dying, every day we are told that thousands of jobs are at stake,” said Frederic Merlin, president of Société des Grands Magasins (SGM), which owns BHV.
The rise of online shopping has intensified pressure on department stores globally. Laetitia Henry, general manager of Printemps Haussmann in Paris, explains:
“Before, our competitors were other large local department stores. Then came competition from websites. More recently, we’ve been facing a new international threat in the form of ultra-fast fashion, which can copy a designer dress in three weeks and sell it for less than 10% of the price.”
In the U.S., similar pressures have forced Macy’s to close stores, while Saks Global is exploring divestitures to reduce debt.
To compete, French department stores are evolving into lifestyle destinations. Le Bon Marché hosts concerts and dance events, Printemps offers fine dining, beauty treatments, and even an ice rink during the festive season, while Galeries Lafayette invested over €100 million in renovations, including restoring its iconic stained-glass cupola.
“The idea is always to give customers a reason to come,” said Henry.
However, mid-range stores continue to struggle, and industry experts are watching Shein’s impact on foot traffic and overall sales closely.
Despite the initial surge in visitors, Shein’s presence has not been without issues. Late payments to brands at BHV have caused product shortages, raising concerns among employees. Some shoppers also found Shein’s prices too high, and Paris city hall has blocked outdoor Christmas events at BHV due to the “highly controversial context.”
Earlier, France temporarily suspended Shein’s French marketplace over the sale of illegal products. The suspension ended after Shein removed the offending items. Meanwhile, new European customs rules targeting low-value parcels could further affect Chinese retailers like Shein and Temu by 2026.
“Is Shein really a traffic driver for department stores … or are you just killing yourself? That’s a big question,” said Selvane Mohandas du Ménil, managing director of the International Association of Department Stores.
SGM has postponed the opening of five additional Shein shops in French department stores to refine its marketing strategy. The Paris flagship will remain under the BHV name after ending a franchise agreement with Galeries Lafayette.
As ultra-fast fashion meets traditional retail, the coming months will test whether partnerships like BHV and Shein can genuinely revitalize department stores—or merely highlight their vulnerabilities.
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