Paris department store says Shein deal was a 'strategic error,' wants it gone by Christmas

An established Paris department store is unwinding its relationship with Shein only months after installing the ultra-fast-fashion company in its flagship store. 

The company's chief executive, now leaving, says the move was a mistake.

What happened?

The Paris BHV Marais store is expected to drop Shein as a partner following a sale that shifts the site to new owners, according to France 24. 

SGM said it sold the outlet at a loss to a group of executives that includes departing CEO Karl-Stephane Cottendin.

Controversy over the arrangement began in November, when Shein opened its first physical outlet at BHV's main store. Critics pointed to the company's ultra-fast-fashion approach, its environmental impact, and childlike sex dolls listed on Shein's online marketplace.

Since Shein moved in, roughly 100 brands have exited BHV Marais. Management said some left because they objected to the partnership, while other departures were tied to unpaid IT-related bills.

As he exits after the transaction, Cottendin said Shein should, "ideally," be out of the store by Christmas and said letting the company in had been a "strategic error." Another BHV location west of Paris is also being turned over to new management, while SGM retains seven other stores, five of which added Shein this year.

Why does it matter?

Shein has become one of the clearest examples of how ultra-fast fashion can drive the overproduction of cheap clothing, much of which is thrown away after only a short time in someone's closet.

That business model is tied to water contamination from textile dyeing, air pollution from manufacturing and shipping, and labor systems that critics say depend on exploitation.

It can also cost shoppers more in the long run. Clothes designed to be as cheap and trend-driven as possible often wear out quickly, forcing people to replace them more often and spend more over time.

France has already penalized Shein on multiple fronts. Earlier this month, the company was hit with more than €22 million in fines tied to delivery times, environmental labeling, and product traceability, bringing the country's total penalties against Shein to more than €210 million.

What is being done?

The Paris store is making moves to rid itself of Shein and has set a clear target date for that to happen.

Frédéric Merlin, an SGM director, also acknowledged that the company had made "mistakes" and said the sale reflected a "genuine plan for an effective takeover by serious people." He added that Shein contracts at other stores will be "honoured" while a review is carried out.

After the November backlash over childlike sex dolls, Shein said it "immediately removed the products from its marketplace" and barred such products worldwide.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.