Paris Department Store Workers Protest over Shein Deal and Mismanagement

An entrance to the Bazar de l'Hotel de Ville department store is seen in Paris, France, August 4, 2018. (Reuters)
An entrance to the Bazar de l'Hotel de Ville department store is seen in Paris, France, August 4, 2018. (Reuters)
TT

Paris Department Store Workers Protest over Shein Deal and Mismanagement

An entrance to the Bazar de l'Hotel de Ville department store is seen in Paris, France, August 4, 2018. (Reuters)
An entrance to the Bazar de l'Hotel de Ville department store is seen in Paris, France, August 4, 2018. (Reuters)

Workers staged a demonstration at Parisian department store BHV on Friday to protest against management and its deal with Shein granting the fast-fashion retailer a permanent space on the seventh floor.

BHV owner Société des Grands Magasins (SGM) has faced a wave of criticism in France, including from the mayor of Paris, since last week's announcement of the partnership with Shein, which ships cheap clothes straight from factories in China to shoppers in more than 160 countries.

Dozens of workers gathered, waving labor union flags, outside the department store at 3:30 p.m. local time (1330 GMT) where union representatives and city hall officials made speeches.

Late payments to brands at the department store, which has struggled for years, had already led to shortages of products, hurting sales and leaving workers concerned for their jobs, according to a union statement read out at the protest.

UNIONS OPPOSE DEAL, SGM SAYS IT WILL ATTRACT YOUNG SHOPPERS

The announced departure of several French brands from BHV following the Shein deal is now compounding those concerns, the union members said.

"Our customers have already left because they can't find what they want, but they're also concerned and don't approve of Shein's arrival," Florine Biais, a BHV worker and union representative, told Reuters at the protest.

Asked about the late payments, SGM said the issue was caused by a shift to new payment systems since it acquired BHV in November 2023 and would be resolved within a few weeks.

SGM has said the Shein store would attract younger shoppers and was part of its plan to modernize BHV.

"We are convinced this partnership is beneficial for the group and its employees," SGM said in an emailed statement on Friday.

Shein spokesperson Quentin Ruffat said the planned store would help increase the number of visitors to BHV and benefit other retailers.

Shein, founded in China in 2012, has grown rapidly to become the world's biggest fast-fashion retailer. It has been criticized by politicians, regulators and other retailers around the world over working conditions at its factories, high carbon emissions, and a lack of public information about its management and finances.

Hit by fines of 191 million euros ($221 million) in total from French and Italian regulators since July, the company is trying to tighten its internal controls to better comply with rules and improve its reputation with consumers.



Debenhams' New Pay Plan Without Vote 'Disgraceful', Says Top Investor Frasers

Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)
Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)
TT

Debenhams' New Pay Plan Without Vote 'Disgraceful', Says Top Investor Frasers

Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)
Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)

A move by struggling British online fashion retailer Debenhams to push ahead with a new executive pay scheme without seeking approval from investors was "utterly disgraceful", the finance chief of rival Frasers said on Thursday.

Frasers is Debenhams' biggest investor with a 29.7% stake.

Last week, Debenhams said that one of the reasons it was not asking for a shareholder vote on the new pay scheme worth up to 222 million pounds ($296 million) was because a "major competitor" investor, which it did not name, had tried to block previous resolutions.

Debenhams has been locked in a long-running tussle with Frasers, majority-owned by British retail tycoon Mike Ashley, which unsuccessfully attempted to block its rebrand and oust its co-founder.

Frasers' chief financial officer Chris Wootton said Debenhams' latest move, which could see CEO Dan Finley earn up to 148 million pounds if Debenhams' share price hits 3 pounds over the next five years, was "typical corporate governance from them, utterly disgraceful".

However, he told Reuters that if Debenhams achieved a share price of 3 pounds "shareholders will be happy."

Debenhams shares were trading at 22.25 pence on Thursday, down 3.3%.


Zara Owner Inditex Reports Strong Start to Winter Sales

FILE PHOTO: A person walks by a Zara store in Plaza de Espana in Madrid, Spain, June 11, 2025. REUTERS/Ana Beltran/File Photo
FILE PHOTO: A person walks by a Zara store in Plaza de Espana in Madrid, Spain, June 11, 2025. REUTERS/Ana Beltran/File Photo
TT

Zara Owner Inditex Reports Strong Start to Winter Sales

FILE PHOTO: A person walks by a Zara store in Plaza de Espana in Madrid, Spain, June 11, 2025. REUTERS/Ana Beltran/File Photo
FILE PHOTO: A person walks by a Zara store in Plaza de Espana in Madrid, Spain, June 11, 2025. REUTERS/Ana Beltran/File Photo

Zara owner Inditex said sales grew 10.6% in constant currency over the start of its fourth quarter, beating analysts' expectations for the November period that includes the crucial Black Friday sales.

The $178 billion fast fashion giant also reported on Wednesday sales of 9.8 billion euros ($11.41 billion) for its third quarter ending October 31, higher than the 9.69 billion euros expected by analysts according to an LSEG estimate.

The results from Inditex, seen as a bellwether for the global fast fashion sector, provide a first glimpse into how successful the key Black Friday sales weekend was for retailers.

The strong sales growth in the period from November 1 to December 1 compared to a year ago marked an acceleration from the nine-month currency-adjusted growth rate of 6.2%, an encouraging sign for the fourth quarter, its biggest in terms of revenues.


Hugo Boss Sees 2026 EBIT at 300 Million-350 Million Euros on Strategic Overhaul

FILE PHOTO: Plastic toilet cabins are reflected in a window with the logo of Hugo Boss fashion company in central Moscow, Russia, May 8, 2025. REUTERS/Maxim Shemetov/File Photo/File Photo
FILE PHOTO: Plastic toilet cabins are reflected in a window with the logo of Hugo Boss fashion company in central Moscow, Russia, May 8, 2025. REUTERS/Maxim Shemetov/File Photo/File Photo
TT

Hugo Boss Sees 2026 EBIT at 300 Million-350 Million Euros on Strategic Overhaul

FILE PHOTO: Plastic toilet cabins are reflected in a window with the logo of Hugo Boss fashion company in central Moscow, Russia, May 8, 2025. REUTERS/Maxim Shemetov/File Photo/File Photo
FILE PHOTO: Plastic toilet cabins are reflected in a window with the logo of Hugo Boss fashion company in central Moscow, Russia, May 8, 2025. REUTERS/Maxim Shemetov/File Photo/File Photo

German fashion group Hugo Boss on Tuesday said it expects its earnings before interest and taxes to be between 300 million and 350 million euros ($406.74 million) in 2026, as it undertakes a strategic overhaul.

The company forecast currency-adjusted sales to fall in mid- to high-single digits in 2026 before returning to growth in 2027, due to deliberate brand and channel realignment, Reuters reported.

The update follows last month's guidance for 2025 at the lower end of its range, between 4.2 billion and 4.4 billion euros in sales and operating profit of 380 million to 440 million euros, citing rising macroeconomic uncertainty and adverse currency moves.

It had also reported its quarterly sales below expectations, hurt by weaker demand in Britain and China and pressure from a softer dollar.

The company said it would provide a detailed outlook for 2026 on March 10, alongside full-year 2025 results.