Shein's French Expansion Delayed as Paris Store Prices Draw Criticism

The rapid expansion of Chinese fast-fashion giant Shein across France has hit an unexpected roadblock as department store owner Societe des Grands Magasins (SGM) announced delays to five planned concession openings. This strategic pause comes after the retailer's inaugural Paris store at BHV Marais department store revealed a significant pricing disconnect between customer expectations and actual in-store costs.

Pricing Strategy Under Scrutiny

The core issue emerged when shoppers visiting Shein's Paris store discovered prices substantially higher than those available on the company's French website. Items such as fake leather shorts priced at 41.03 euros ($47.7), knitted cardigans at 22.99 euros, and jackets from Shein's premium MOTF brand at 64.99 euros positioned the retailer closer to competitors like Zara rather than maintaining its signature budget-friendly image. This pricing approach created immediate friction with customers who had come expecting the rock-bottom prices that made Shein famous.

Strategic Reassessment and Expansion Plans

SGM and Shein are now taking additional time to refine their approach before proceeding with regional expansions. According to an SGM spokesperson, the companies are working to secure larger spaces in regional department stores to accommodate a broader range of products, including more affordable items alongside the premium MOTF collection. "We prefer to push the openings back by a few days, to get around the table, improve the range, expand the spaces, and offer lower prices," the spokesperson explained to Reuters.

Original Expansion Timeline and Current Status

The delayed openings were originally scheduled to roll out across November and December 2025, with stores planned for Dijon, Reims, Grenoble, Angers, and Limoges. Shein emphasized that both companies are currently focusing on enhancing the customer experience at the existing Paris location, which has reportedly been "a strong success since its opening" despite the pricing concerns. No revised opening dates have been announced for the regional stores as both companies continue to evaluate their strategy.

Broader Context and Challenges

The pricing controversy occurs against a backdrop of existing tensions between Shein and French retailers and politicians who have criticized the company's business model. The Paris store opening also coincided with regulatory scrutiny when France's finance ministry temporarily suspended Shein's online platform over concerns about inappropriate products, though suspension proceedings were later halted. Additionally, SGM's partnership with Shein prompted Galeries Lafayette to end their franchise agreement with SGM, reflecting the divisive nature of Shein's entry into the French retail market.

The delayed expansion highlights the challenges global fast-fashion retailers face when transitioning from purely online operations to physical retail presence in new markets. Shein's experience in France demonstrates how customer expectations shaped by online pricing can create significant hurdles for brick-and-mortar operations. As both companies work to recalibrate their approach, the outcome will likely influence how other digital-native brands approach physical retail expansion in international markets.