Lead

A historic department store in central Paris is severing ties with Chinese ultra-fast-fashion giant Shein, bringing an end to a partnership that sparked widespread criticism and a wave of brand departures. The operator of BHV Marais, La Societe des Grands Magasins (SGM), announced on Tuesday that it has sold the store to a group of executives led by its outgoing CEO, Karl-Stephane Cottendin, who admitted that allowing Shein to open a store there was a 'strategic error.' Shein is expected to leave the premises by Christmas, according to reports from Agence France-Presse (AFP) and the two parties involved.

Coverage Comparison

The announcement was covered by both France 24 and the South China Morning Post (SCMP), with both outlets reporting the core details: the sale of BHV Marais, the loss incurred by SGM, and Cottendin's admission. France 24 framed the story primarily as a response to criticism of Shein's business practices, emphasizing the environmental impact of its fast-fashion model and other controversies. The South China Morning Post took a more neutral business angle, focusing on the end of the cooperation and the strategic miscalculation by SGM.

Both sources cited AFP for key details, including the fact that SGM sold the store at a loss and Cottendin's comments. France 24 also highlighted the broader concerns surrounding Shein, including its environmental record, criticism over working conditions, and a controversy involving the sale of childlike sex dolls, which was mentioned in the SCMP report as well. The SCMP noted that many brands ended their contracts with BHV in protest over Shein's presence, a point that France 24 also made, describing the store as "largely deserted" during the first half of the year.

Key Claims

  • Cooperation ending and sale: SGM, which operated the BHV Marais store opposite Paris City Hall since 2023, has sold the store to a group of executives led by Karl-Stephane Cottendin, according to a company statement reported by both France 24 and the SCMP. The sale was made at a loss, as reported by AFP and cited by both outlets.
  • CEO's admission: Cottendin, who publicly defended the decision to open a Shein store when it launched in November, told AFP that the decision was a "strategic error" and that Shein would "ideally" leave the store by Christmas. He will step down as SGM's CEO following the deal.
  • Brand departures: Many brands chose to end their contracts with BHV in protest over Shein's presence. The SCMP reported that "many brands ended their contract with BHV," while France 24 said the store was "largely deserted" and cited social media videos of empty floors. SGM President Frederic Merlin attributed the empty space to renovation work in an Instagram post in May, as reported by France 24.
  • Shein's practices: Shein, founded in China in 2012 and now based in Singapore, has faced criticism in several countries over working conditions at its suppliers and the environmental impact of its ultra-fast-fashion business model, according to both outlets. France 24 also reported that France has imposed fines on Shein totaling more than 210 million euros, citing problems with product traceability, environmental labelling, and delivery times. Additionally, Shein came under scrutiny in November after French authorities condemned it for featuring sex dolls resembling children on its website. Shein said it immediately removed the products and banned sex dolls from its site globally, following the uproar.
  • Other stores: A second BHV store west of Paris will also come under new management, while SGM will retain control of seven other locations, five of which have welcomed Shein this year. Contractual commitments with Shein at the non-Paris stores will be "honoured" pending a "long-term" review, according to SGM director Frederic Merlin, as reported by the SCMP.

Perspectives

SGM and Karl-Stephane Cottendin

The outgoing CEO of SGM acknowledged the decision to host Shein as a "strategic error" and expressed hope that Shein would leave by Christmas. SGM director Frederic Merlin acknowledged having made "mistakes" and described the sale of BHV as a "genuine plan for an effective takeover by serious people."

Shein

Shein did not immediately respond to a request for comment from the South China Morning Post. The company has previously defended its business model and, after the sex doll controversy, said it immediately removed the products from its marketplace and banned sex dolls from its site globally.