Despite a climate of intense political and legal pressure, Shein expanded its operations by inaugurating permanent physical outlets within five regional BHV department stores including Angers, Dijon, Grenoble, Limoges, and Reims on February 25, 2026.
Initially delayed by a four-month impasse following the controversial 2025 Paris debut, the expansion signals a decisive move by owner Société des Grands Magasins (SGM) to stabilize a retail model under fire. While the Paris flagship reportedly attracted 5,000 daily visitors, its actual conversion rate has been closely monitored, with transaction data from the Institut Français de la Mode (IFM) showing Shein now accounts for 6 per cent of French clothing sales by volume, yet only 2 per cent by value, reflecting the extreme low-price strategy that has local retailers on edge.
Navigating the ‘Ultra-Fast Fashion’ Crackdown
The regional launch coincides with the activation of France’s landmark anti-fast fashion legislation, which as of January 2026 bans advertising for ultra-fast fashion brands and prepares to impose a sliding ‘eco-tax’ starting at €5 per garment. This fiscal hurdle is compounded by an ongoing European Union safety investigation and a pending French court verdict due on March 19, which could potentially block Shein's marketplace operations. We are operating in a year of transformation, noted Frédéric Merlin, Chairman, SGM, who recently secured a €300 million real estate deal with Brookfield Asset Management to boost BHV’s liquidity. The regional strategy specifically targets the 95 per cent of Shein’s French customer base residing outside major hubs, attempting to bridge the gap between digital accessibility and the tangible luxury of historic department stores.
Case study: The BHV rebranding friction
The partnership has triggered a structural schism in French retail. The Galeries Lafayette group recently terminated franchise contracts for seven provincial stores to distance its brand identity from Shein’s high-volume model, forcing SGM into an immediate rebranding of those sites to the ‘BHV’ banner. The provincial experiment now serves as a high-stakes litmus test; Merlin has explicitly stated that if the experiment does not demonstrate profitability within twelve months, SGM will terminate the alliance. This ‘one-year trial’ highlights a potential ceiling for ultra-fast fashion's physical integration in a market increasingly prioritizing "Material Honesty" and sustainability.
SGM is a specialized retail property and management firm that acquired the iconic BHV Marais and several regional outlets in 2023. The company revitalizes urban centers by integrating high-traffic digital giants into traditional heritage environments.
Managing approximately 1,300 employees, SGM transitioned from an €11 million loss in 2023 to a modest profit in 2024 through aggressive cost-cutting. Its 2026 growth plan includes 1,000-square-meter food halls and a specialized parapharmacy to diversify footfall beyond apparel.
