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CIO Bulletin
04 October, 2025
Local retailers, government officials, and legislators heavily criticize Shein for its retail expansion in France due to sustainability-based criticism, competition, and its fast-fashion retail practices.
Fast-fashion retailer Shein, known much more in the online platform, will have its first permanent retail outpost in France this November as part of a partnership with Societe des Grands Magasins (SGM). The push will involve Shein stores within the BHV department store within Paris and Galeries Lafayette stores in five more locations in France.
Although the SGM president Frederic Merlin said that the launch would appeal to the younger shoppers, the idea has met criticism among the French retail stakeholders. Galeries Lafayette disagreed with the move, terming it as a breach of its franchise agreement and contrary to its values. Paris Mayor Anne Hidalgo also found fault with the development, citing it as a derailment of Paris city initiatives to foster local business sustainability.
The Federation Francaise du Pret-a-Porter bulletined that the active presence of fast fashion outlets, spearheaded by Shein, deprives other sector brands, which are already struggling against international retail chains such as Zara and H&M. It is to such an extent that even the legislation in France has been supporting the adoption of fast fashion regulations, which will subsequently restrict Shein's advertising capabilities.
Shein, having achieved its prosperity with the help of the online-based retail business model, is currently struggling to cover its operational expenses to keep inventories of physical stores along with adjusting to evolving trade regulations in the U.S. and EU.