French media reported on Tuesday (June 16) that the French department store BHV Marais will terminate its partnership with the Chinese fast fashion e-commerce platform Shein. The collaboration with Shein at the BHV store had stirred controversy for months.
BHV department store in Paris is the flagship store of the French department store group SGM. SGM announced on Tuesday that it would sell the Paris store, after which BHV announced the termination of its partnership with Shein.
Last November, Shein opened its first permanent physical store at the BHV flagship store, sparking strong public protests. People expressed dissatisfaction with its fast fashion business model, environmental impact, and the online sale of sexualized children’s dolls.
SGM has sold the store at a loss to a group of executives, including the outgoing SGM CEO Karl-Stephane Cottendin. Both sides confirmed this information to Agence France-Presse.
Cottendin will step down as CEO of SGM after the transaction is completed. He stated that, ideally, Shein should withdraw from the department store before Christmas, describing the decision to allow Shein into BHV as a “strategic mistake.”
Another BHV store located west of Paris will be operated by a new management team, while SGM will retain control of its remaining seven stores, five of which have introduced Shein this year.
SGM director Frederic Merlin stated that contractual obligations with Shein for non-Paris stores will continue to be fulfilled during a “long-term” evaluation process.
Founded in China in 2012, Shein is now headquartered in Singapore. The company has faced criticism in numerous countries for the working conditions of its suppliers and the environmental impact of its “ultra-fast fashion” business model.
Last November, French authorities condemned Shein for selling child-like sexualized dolls on its website, leading to renewed scrutiny of the company.
Following the controversy over the dolls, Shein immediately removed the products from its “marketplace” section (where third-party products are sold on the website) and announced a global ban on the sale of such products on its platform.
After Shein’s presence at BHV Marais department store, approximately 100 brands left the mall. Management indicated that the departures were due to conflicts with the Asian brand or unresolved payment issues related to IT systems.
Earlier this month, France imposed two fines totaling over 22 million euros (approximately 26 million USD) on Shein for issues related to product traceability, environmental labeling, and delivery efficiency.
With these penalties, France’s total fines against this Asian fashion giant have exceeded 210 million euros.