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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.

Shein’s UK Sales Surge to $2.8 Billion in 2024

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Shein’s British business generated £2.05 billion ($2.77 billion) in sales in 2024, marking a 32.3% increase from 2023, according to a recent filing. The UK represents Shein’s third-largest market after the United States and Germany as the fast-fashion e-commerce giant prepares for an initial public offering in Hong Kong.

Shein Distribution UK Ltd reported a pretax profit of £38.25 million in 2024, up 56.6% from £24.4 million the previous year. The filing highlighted milestones including a pop-up shop in Liverpool, a Christmas bus tour across 12 UK cities, and the opening of two new offices in Kings Cross and Manchester.

The retailer is known for low prices, constant promotions, and rewards programs that encourage repeat purchases. Shein has captured market share from competitors such as ASOS (ASOS.L) and H&M (HMb.ST), especially as rising inflation has pushed consumers toward bargain hunting. Its UK site offers items ranging from £7.99 ($10.84) dresses and £15 ($20.36) jeans to toys, craft supplies, and storage products.

Shein has benefited from customs duty exemptions on low-value e-commerce shipments, allowing goods to be shipped directly from Chinese factories largely tariff-free. However, these exemptions are being phased out, raising costs and prices, particularly in the U.S. The Trump administration eliminated the “de minimis” exemption for parcels under $800, and the EU plans to remove its duty waiver for parcels under €150. The UK is also reviewing its policy on low-value imports amid complaints that it favors online retailers like Shein and Temu.

Shein and Temu Outpace Global Retail Giants in South Africa’s Fashion Market

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China-founded e-commerce retailers Shein and Temu have rapidly captured a combined 3.6% share of South Africa’s retail clothing, textile, footwear, and leather (CTFL) market, generating sales worth 7.3 billion rand ($405 million) in 2024, according to a new report.

Shein entered South Africa in 2020, with Temu following in 2024. Both companies have disrupted the local retail sector through aggressive pricing strategies, targeted marketing, and exploiting tax loopholes that initially gave them a competitive advantage over domestic retailers. The tax loopholes were closed last year after calls from local retailers and regulators.

The Localisation Support Fund (LSF) report highlighted a decline in domestic retailers’ market share of the CTFL sector, dropping from 75.3% in 2011 to 74% in 2024. Meanwhile, established international brick-and-mortar brands such as H&M, Zara, and Cotton On collectively hold a 3.4% share.

Shein and Temu together now control 3.6% of the overall CTFL market and a significant 37.1% of South Africa’s e-commerce CTFL market. Shein alone accounts for 28% of online ladies’ CTFL sales.

Sean Mercer, principal consultant at BMA, emphasized the speed of their rise: “Those international retailers have acquired this market share over 13 years, and Shein and Temu have managed to match and surpass this in just five years.”