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Shein’s First Permanent Stores in France Ignite Fierce Backlash from Retailers and Officials

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Fast-fashion giant Shein is taking its first major step into physical retail in France, announcing plans to open permanent stores this November in collaboration with Société des Grands Magasins (SGM). The rollout includes a flagship location on the sixth floor of Paris’s BHV department store and additional stores in Galeries Lafayette branches across Dijon, Grenoble, Reims, Limoges, and Angers.

Until now, Shein’s presence in physical retail was limited to short-term pop-up stores designed for marketing. The partnership with SGM, however, signals a significant strategic shift—one that has immediately triggered political and industry backlash.

Galeries Lafayette, which licenses its name to SGM through a franchise agreement, said it opposes the decision and intends to block the openings, citing Shein’s “ultra fast fashion practices” as incompatible with its brand’s values. “This decision contradicts our commitment to quality, sustainability, and responsible commerce,” the group stated.

The criticism has extended beyond retail circles. Paris Mayor Anne Hidalgo denounced the plan as incompatible with the city’s sustainability goals, warning that it undermines efforts to promote local and eco-friendly businesses. “We are extremely concerned by BHV’s decision to host the first permanent Shein store in France,” she wrote on LinkedIn, calling for support of ‘sustainable local commerce.’

Industry leaders also reacted sharply. Yann Rivoallan, president of the Fédération Française du Prêt-à-Porter Féminin, accused Shein of “destroying dozens of French brands” and warned that the new megastore would “flood the market with disposable products.” The backlash comes as French lawmakers advance a draft bill to regulate fast fashion, potentially banning Shein from advertising in France.

Shein’s model—offering €12 dresses and €20 jeans shipped directly from Chinese factories—has upended the retail landscape by exploiting customs exemptions for low-value parcels. The company claims its online-only model keeps waste minimal, but the shift to physical stores could challenge that efficiency by forcing it to maintain inventory and absorb higher operating costs.

The expansion also coincides with regulatory shifts in major markets. The U.S. is phasing out Shein’s “de minimis” duty exemption, and the European Union is preparing similar reforms. Despite these headwinds, Executive Chairman Donald Tang insists Shein remains a favorite among rural and provincial shoppers, who often have fewer options for affordable fashion.

Whether these stores succeed—or spark a broader European backlash—will test Shein’s ability to translate its digital dominance into physical retail while navigating growing political, environmental, and cultural resistance.

Costco Defends DEI Initiatives Amid Conservative Backlash

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Costco has taken a firm stance in support of its diversity, equity, and inclusion (DEI) efforts, pushing back against activist shareholders advocating for the dismantling of these policies. While companies like Walmart, John Deere, and Tractor Supply have shifted or scaled back their DEI initiatives, Costco remains committed, emphasizing the value DEI brings to its unique shopping experience.

The warehouse retailer’s board of directors unanimously recommended that shareholders reject a proposal from the National Center for Public Policy Research (NCPPR), a conservative think tank. The proposal called for Costco to issue a report on the financial risks of its DEI policies, alleging potential “illegal discrimination” against employees who are white, Asian, male, or straight.

Costco defended its DEI practices, stating they play a vital role in attracting and retaining diverse talent, enhancing merchandise originality, and fostering a shopping environment that reflects its members’ diversity. “A diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” the company explained in a proxy statement.

The retailer also highlighted its support for minority-focused organizations like the Thurgood Marshall College Fund and its supplier program, which collaborates with small and diverse businesses. Costco argued that NCPPR’s proposal disguised an anti-diversity agenda under the pretense of mitigating risk, stating, “The proponent’s broader agenda is not reducing risk for the company but abolition of diversity initiatives.”

Costco’s defense comes as DEI policies face mounting criticism from conservative groups, legal challenges, and political shifts. Some companies have adjusted their language—substituting terms like “DEI” with “inclusion” or “belonging”—to deflect pressure, while others have downplayed their DEI efforts compared to the heightened focus in 2020 and 2021.

Despite this environment, Costco has positioned itself as a progressive employer, known for paying some of the highest wages in retail. The company’s commitment to DEI, it says, reflects its belief in fair and legal practices that benefit its employees, customers, and shareholders alike.

 

Freight Rail Delays at Port of Los Angeles Reach Two-Year High Amid Record Imports and Congestion

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Freight rail delays at the Port of Los Angeles have hit a two-year high due to record import volumes, driven by shifts in shipping patterns from East Coast and Gulf Coast ports and ongoing issues in the Red Sea. As a result, nearly half of all containers designated for rail transport are now experiencing delays of nine or more days, compared to an average of four days earlier this year.

September saw the Port of Los Angeles handle an impressive 954,706 twenty-foot equivalent units (TEUs), marking its best September on record. Executive Director Gene Seroka noted that 20,000 rail containers are currently awaiting loading, highlighting the growing backlog. Despite the congestion, Seroka emphasized that vessel and trucking operations remain unaffected, with rail delays as the primary focus.

The situation is further complicated by a variety of factors expected to influence container growth in the coming months, including an early Lunar New Year, the U.S. presidential election, and overall economic strength. Seroka indicated that October is projected to be another strong month for the port.

Meanwhile, at the Port of Long Beach, Executive Director Mario Cordero reported a similarly high volume of traffic, with rail dwell times averaging seven days, though the port has not experienced the same level of congestion as Los Angeles. With a 26% increase in on-dock rail movement, Long Beach continues to operate fluidly and is well-positioned to handle continued high cargo volumes.

Retailers and chemical companies, such as Home Depot, Walmart, and the Alliance for Chemical Distribution (ACD), are growing concerned about the potential for further delays as holiday and everyday items, including key chemicals used in household goods, continue to pile up. Retail executives have expressed confidence in meeting consumer demand despite these disruptions, with holiday sales expected to grow by 2.5% to 3.5% over last year.

Rail operators Union Pacific and BNSF are making adjustments to manage the increased flow of containers, but logistical challenges, such as a shortage of rail cars returning to the West Coast, are compounding the delays. Some logistics providers, like ITS Logistics, are bypassing rail terminals altogether and relying on truck transport to move goods further inland in an effort to avoid potential bottlenecks.

Both Union Pacific and BNSF have taken measures to increase capacity and improve efficiency, but the high volume of containers and disruptions like the East Coast port strikes and lithium battery fires continue to strain operations. Despite these efforts, average dwell times for containers being loaded onto rail can range from two to four weeks, leaving some shippers seeking alternative routes through East Coast ports to mitigate delays.

Looking ahead, continued uncertainty around East Coast labor negotiations and ongoing shipping diversions from the Red Sea region suggest that congestion at West Coast ports may persist for the foreseeable future, requiring stakeholders across the supply chain to collaborate in order to keep goods moving and avoid further disruptions.