The Galeries Lafayette Group opposes Shein’s entry into Galeries Lafayette stores operated by SGM

The reaction was swift. On October 1, in the late afternoon, Shein and Société des Grands Magasins announced an agreement to establish permanent bricks-and-mortar retail spaces on the sixth floor of BHV Marais in November, followed by five Galeries Lafayette stores in Angers, Dijon, Grenoble, Limoges and Reims. A striking announcement: the project is a world first and brings together two of the oldest names in global fashion retail.

However, although the retail property company chaired by Frédéric Merlin oversees these stores, the Galeries Lafayette group retains a say over their image and operations. And within minutes of the Asian ultra-fast-fashion giant and its new French partner making their announcement, the group, whose executive board is chaired by Nicolas Houzé, a descendant of the founders of the Parisian department stores, made its position perfectly clear: “Galeries Lafayette refuses to allow Shein to set up shop in the five affiliated stores in SGM’s French network”.

In an interview with the daily Le Parisien, the head of the SGM group, which has seven affiliated Galeries Lafayette stores in the regions and shopping centres in its portfolio, said he was pleased to have concluded an exclusive partnership with Shein, which he says is “a way to create buzz.”

Indeed, the National Clothing Federation, which represents independent retailers, quickly criticised the decision: “After Pimkie, it is now BHV, a veritable Parisian institution since 1860, and Galeries Lafayette in the regions, turning to ultra-fast fashion, confirming an alarming lack of imagination and professionalism: these retail chains, which in the past have contributed so much to France’s influence and creativity, are today choosing to associate themselves with what is most questionable in the fashion sector.”

While Shein and SGM might have expected this response from trade federations that have long voiced their opposition to the Singapore-based platform’s model, the Galeries Lafayette group’s reaction could have far more serious implications for the agreement.

The group said in a press release: “Galeries Lafayette wishes to express its profound disagreement with this decision in view of the positioning and practices of this ultra-fast-fashion brand, which run counter to its offering and values. It also contravenes the contractual terms of affiliation that bind the SGM group to Galeries Lafayette. The company has informed the SGM group and its chairman, Frédéric Merlin, of its position. Galeries Lafayette will prevent this decision from being implemented.”

The French group, which did not mention BHV in its statement, did not specify the measures it intended to take to counter this project. Nonetheless, SGM remains tied to the Galeries Lafayette group, whether via the central buying office or through the private labels distributed in the affiliated stores.