Background on Shein and Société des Grands Magasins (SGM)
Shein, a popular online fast-fashion retailer based in China, announced on Friday the postponement of opening five new stores across France. The decision comes after customers complained about high prices at Shein’s newly opened store in Paris, which is owned by Société des Grands Magasins (SGM), a company that manages several large department stores.
Shein’s Paris Store Opening and Customer Reactions
The first physical store of the online-based Shein opened its doors last week at the BHV department store in Paris, drawing thousands of bargain hunters and causing a widespread reaction from other retailers. However, some shoppers who visited the Shein store on opening day were surprised by prices that seemed higher than what they are accustomed to seeing online.
- Prices for items such as synthetic leather shorts ($47.70), knit cardigans ($22.99), and a MOTF branded jacket ($64.99) were more comparable to Zara’s prices and exceeded those of similar items on the French version of Shein’s website.
Balancing Low Prices and Premium Offerings
SGM and Shein face a delicate balancing act, as the low prices that have made Shein popular among its loyal customers are also a major point of criticism from French retailers and politicians. SGM aims to secure larger spaces for Shein in their regional department stores, allowing them to offer a broader range of affordable items alongside more premium brands like MOTF, according to a statement from SGM.
“We prefer to postpone the openings for a few days, to adjust our strategy, improve product selection, expand spaces, and offer lower prices,” said a SGM spokesperson.
- The first Shein stores will open in Dijon, Reims, and Grenoble in November, followed by Angers and Limoges in early December.
Key Questions and Answers
- What is Shein? Shein is a Chinese online fast-fashion retailer known for its trendy, low-cost clothing.
- Who owns Société des Grands Magasins (SGM)? SGM is a French company that manages several large department stores, including BHV in Paris.
- Why are there criticisms against Shein’s prices in France? Despite Shein’s reputation for low prices, some customers found the in-store prices in Paris to be higher than expected, which has drawn criticism from French retailers and politicians.
- How is SGM addressing the concerns? SGM plans to give Shein more space in their regional department stores, enabling them to offer a wider range of affordable items alongside premium brands.
- When will the delayed Shein stores in France open? The first Shein stores are scheduled to open in Dijon, Reims, and Grenoble in November, followed by Angers and Limoges in early December.
