Shein and Paris department store end controversial partnership
Overview of the Shein-BHV Partnership and Its Termination
Background and Timeline
PARIS, June 16 (Reuters) - French department store BHV and online fast-fashion retailer Shein have ended their partnership, just seven months after the opening of a permanent Shein shop in the Paris department store triggered controversy and widespread criticism.
Ownership Changes at BHV
Sale of BHV to Current Management
• Societe des Grands Magasins (SGM), which has operated BHV in Paris since 2023, said it is selling the Parisian department store to its current management team led by Karl-Stéphane Cottendin.
Leadership Statement on Partnership Termination
• Cottendin said BHV would end its partnership with Shein, describing it as a mistake, according to a spokesperson.
Controversy Surrounding the Partnership
Criticism of Shein's Business Model
• BHV drew criticism for the tie-up with Shein because of the Singapore-based company's business model of rock-bottom pricing and sale of illegal products on its platform.
Shein's Response to the Partnership
• Shein said in a statement that the collaboration with SGM was always been meant to be temporary.
Public and Government Reaction
Protests and Legal Actions
• Shein's launch at BHV in November was met with protests and on opening day, the French government launched an attempt to shut down its platform, later overturned by a Paris court
Customer Reception
• Loyal Shein shoppers who had queued up for the launch were also underwhelmed by the store's offering, with many saying prices were much higher than on Shein's vast online platform, known for $5 dresses and $10 jeans
Business Impact on BHV
Financial Struggles and Brand Departures
• SGM had been struggling before the Shein partnership, falling behind on payments to suppliers, and the Shein launch caused many brands to leave the department store in protest
Shein's Final Statement
• Shein on Tuesday said it respects BHV's decision but added that it was "regrettable" customers had to navigate ongoing construction works in the department store
Reporting Credits
(Reporting by Inti Landauro and Helen Reid; Writing by Makini Brice; editing by Barbara Lewis and Cynthia Osterman)
