Cutting Ties After 7 Months: Paris BHV Department Store Ends Partnership with Shein

SGM Transfers BHV Marais Operating Rights to Management
Partnership Ends After 7 Months; Withdrawal Set Before Year-End
Management Admits "Mistake"; Paris Officials "Welcome" the Move

BHV department store in Paris, France, which faced strong public backlash after bringing in the Chinese fast fashion company Shein, is ultimately ending its partnership with Shein.

The BHV Department Store in Paris, France. Photo by AP Yonhap News.

According to Yonhap News on June 16 (local time), citing AFP, BHV's parent company, Societe des Grands Magasins (SGM), announced that it would transfer the operating rights of the BHV Marais branch, which it has run since 2023, to the current management. This comes just seven months after Shein opened its first permanent store there.

Frederic Merlin, chairman of SGM, accepted a takeover proposal from Karl-Stephane Courteau, the former CEO of BHV. Courteau resigned from his position in order to carry out the acquisition. After taking over the operating rights, Courteau immediately decided to end the partnership with Shein. "This experiment was a mistake," Courteau said, adding, "I hope Shein will withdraw from BHV Marais before Christmas this year." The store will be reorganized to focus once again on home and lifestyle products.

The controversy dates back to November last year. SGM decided to open Shein's first permanent offline store at BHV Marais as a strategy to attract a younger customer base. However, the company's ultra-low-cost business model and the sale of illegal products on the Shein platform triggered fierce criticism from politicians and civil society. In particular, when an "adult doll shaped like a child" was discovered on the Shein France platform around the time of opening, the French government began procedures to suspend the platform on the very day the store opened.

The regulatory pressure continued. Earlier this month, French authorities reportedly imposed a total fine of 22.5 million euros (approx. 3.94 billion won) on Shein for violations of consumer protection and environmental information regulations.

China's fast fashion company Shein, which opened its first permanent offline store at BHV Department Store in Paris, France, is ultimately closing the store. Reuters Yonhap News

The public backlash directly impacted the department store's business. As major brands left in protest over Shein's entry, BHV effectively fell into a state of "open but not operating," which ultimately led to the transfer of its operating rights.

The move was welcomed by French politicians. Emmanuel Grégoire, Deputy Mayor of Paris, called the end of the partnership "excellent news," while Serge Papin, Minister for Trade, said, "Shein does not follow our rules" and welcomed the termination of the partnership. However, among the seven other stores operated by SGM, Shein is present in five locations this year, so the partnership is not yet completely resolved. Chairman Merlin stated, "The contracts with Shein at locations outside Paris will be honored until a long-term review is completed."

Shein stated that "this collaboration was designed to be temporary from the beginning" and said it respects BHV's decision. The company added, "We regret any inconvenience caused to customers during the store renovations."

This content was produced with the assistance of AI translation services.