Paris department store workers protest over Shein deal and mismanagement

By Dominique Patton and Helen Reid

PARIS (Reuters) -Workers staged a demonstration at Parisian department store BHV on Friday to protest against management and its deal with Shein granting the fast-fashion retailer a permanent space on the seventh floor.

BHV owner Société des Grands Magasins (SGM) has faced a wave of criticism in France, including from the mayor of Paris, since last week's announcement of the partnership with Shein, which ships cheap clothes straight from factories in China to shoppers in more than 160 countries.

Dozens of workers gathered, waving labour union flags, outside the department store at 3:30 p.m. local time (1330 GMT) where union representatives and city hall officials made speeches.

Late payments to brands at the department store, which has struggled for years, had already led to shortages of products, hurting sales and leaving workers concerned for their jobs, according to a union statement read out at the protest.

UNIONS OPPOSE DEAL, SGM SAYS IT WILL ATTRACT YOUNG SHOPPERS

The announced departure of several French brands from BHV following the Shein deal is now compounding those concerns, the union members said.

"Our customers have already left because they can't find what they want, but they're also concerned and don't approve of Shein's arrival," Florine Biais, a BHV worker and union representative, told Reuters at the protest.

Asked about the late payments, SGM said the issue was caused by a shift to new payment systems since it acquired BHV in November 2023 and would be resolved within a few weeks.

SGM has said the Shein store would attract younger shoppers and was part of its plan to modernise BHV.

"We are convinced this partnership is beneficial for the group and its employees," SGM said in an emailed statement on Friday.

Shein spokesperson Quentin Ruffat said the planned store would help increase the number of visitors to BHV and benefit other retailers.

Shein, founded in China in 2012, has grown rapidly to become the world's biggest fast-fashion retailer. It has been criticised by politicians, regulators and other retailers around the world over working conditions at its factories, high carbon emissions, and a lack of public information about its management and finances.

Hit by fines of 191 million euros ($221 million) in total from French and Italian regulators since July, the company is trying to tighten its internal controls to better comply with rules and improve its reputation with consumers.

($1 = 0.8636 euros)

(Reporting by Helen Reid and Dominique Patton; Editing by Kirsten Donovan and Joe Bavier)