PARIS — Shein is moving ahead with plans to open shops-in-shop in five regional BHV department stores outside of Paris, expanding its controversial partnership with the legacy retailer.
The ultra-fast-fashion giant’s spaces, ranging from 5,400 to 11,000 square feet, will debut in Limoges, Angers, Dijon, Grenoble and Reims, France, Shein and BHV owner Société des Grands Magasins, or SGM, said in a joint statement on Tuesday.
“These spaces are part of an ongoing experimental partnership between the SGM Group and Shein, focused on bringing a digital-first brand into the physical retail world to better match how people shop today,” they said.
The rollout follows the November launch of what was billed as Shein’s first permanent physical store worldwide inside BHV Marais in Paris — a move that triggered backlash from protestors, politicians, employee unions and brands.
The regional openings had initially been scheduled for late 2025 but were postponed in November amid a controversy surrounding items listed on Shein’s third-party marketplace, including child-like sex dolls and prohibited weapons.
The controversy intensified as roughly 100 brands, including premium beauty and fashion labels such as Sandro and Agnès B., publicly exited BHV in protest over the Shein shop and disputes over delayed payments.
Frédéric Merlin, cofounder of SGM, said in an interview with French daily newspaper Le Figaro that the disputes with suppliers have been settled and the company is implementing a new payment system to pay vendors daily.
Merlin said the Shein partnership addresses the structural challenge of declining footfall and generational shifts in consumption that are impacting city centers. SGM owns 11 shopping centers nationwide.
Shein claims 25 million unique users in France, with 95 percent located outside the major cities of Paris, Lyon and Marseille. For BHV, the bet is that Shein’s customer base can increase foot traffic into provincial stores that were formerly operated under the Galeries Lafayette banner before being rebranded when the department store severed ties with SGM over the Shein deal.
Merlin believes the Shein openings will bring more shoppers into city centers, and has given a himself a one-year timeframe to judge the plan’s success.
The regional rollout will follow a phased approach, beginning with a winter assortment before expanding into seasonal and locally adapted merchandise, the companies said.
At the time of the launch in Paris, customers perceived in-store prices to be higher than online, though the company denied this was the case. Initially, only two in 10 visitors made a purchase. After revising the assortment to include lower-priced items and a wider size range from XXS to XXL, conversion rose to six in 10, a spokesperson for SGM said, confirming press reports.
From April, Shein will take over responsibility for product selection and orders within BHV, while SGM will retain control of sales staff. The department store operator will shift to a commission-based model on Shein sales — reducing inventory risk and aligning more closely with concession-style partnerships.
Atmosphere during Shein first physical store opening at BHV Marais.
Getty Images
In Paris, SGM is planning a broader revamp of the legacy BHV Marais. The company plans to convert about 40 percent of its retail floor space to mixed use, including a 10,000-square-foot food hall and a 3,000-square-foot para-pharmacy, which is focused on nonmedical beauty and wellness products, in the basement. The store’s famous DIY section will remain, while it will expand its book, gift and stationery departments on the ground floor.
Fashion will begin on the first floor, and SGM plans to expand homewares, decoration and tableware on the upper floors.
Additional elements under consideration include restaurants and a gym. Earlier indications that the top floors would be turned into a hotel will not materialize as the historical building is subject to planning restrictions, but the possibility of private residential apartments is still in play.
SGM has halved its rent on the building that houses BHV Marais, under an agreement with real estate private equity firm Brookfield. The Canadian fund acquired the building after SGM’s plan to buy it from Galeries Lafayette fell through following the controversy.
In April, SGM moved chief operating officer and former Merrill Lynch banker Karl-Stéphane Cottendin to the chief executive officer role, while Merlin remains executive chairman. A supervisory board comprised of finance, real estate and retail professionals is expected to be revealed this spring to oversee strategy and management.
