The announcement that Chinese low-cost e-retailer Shein would be arriving in Parisian department store BHV and five Galeries Lafayette stores, a world first, sparked widespread outrage among fashion professionals and politicians. Against a backdrop of unpaid bills, SGM, which operates the stores concerned, is struggling to convince its partners of the merits of its approach. Its image as a high-end multi-brand retailer has been permanently tarnished.
Has BHV signed its death warrant as a premium multi-brand retailer?
While the ultra-discount Chinese brand Shein is counting on it to gain a strong physical foothold in the French market, and BHV is counting on the former to give it a breath of fresh air, the chain reaction triggered by the rapprochement between the two players could well weaken it even further…
Scandal
The agreement between the department store and Shein has caused a real scandal.
In early October, the Société des Grands Magasins (SGM), the commercial real estate company that operates BHV Marais and a handful of Galeries Lafayette stores, thanks to transfer and affiliation agreements with the Galeries Lafayette group.
Already well established on the French market through online sales, the Chinese discounter has announced that it will open its first permanent physical locations not only in France but also worldwide at BHV and in five Galeries Lafayette stores (Angers, Dijon, Grenoble, Limoges, and Reims) managed by SGM.
Starting in November, Shein is expected to occupy more than 1,000 square meters (out of more than 39,000 square meters) of the BHV store and 300 to 400 square meters in Galeries Lafayette.
Pimkie excluded from retail structures for making a deal with Shein
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Featured photo: © Unsplash and BHV Marais
