Shein's 1st Bricks-and-mortar Shop Highlights Department Stores' Existential Pain

FILE PHOTO: A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
FILE PHOTO: A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
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Shein's 1st Bricks-and-mortar Shop Highlights Department Stores' Existential Pain

FILE PHOTO: A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
FILE PHOTO: A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo

Shein's move into the flagship BHV in Paris has added political heat to the troubles of department stores, which are facing an existential threat from shoppers' shift to online retailers offering ultra-fast fashion.

The Chinese budget retailer opened its first bricks-and-mortar shop in the BHV department store on the Rue de Rivoli in central Paris earlier this month, triggering an outcry from lawmakers and other retailers, who say Shein's low-cost business model has hurt French shopping streets.

For BHV, renowned for its wide range of goods, the move was an attempt to attract younger shoppers, who have become big fans of online platforms like Shein for everything from cosmetics to fashion.

The growth of online has added to the troubles of department stores around the world, many of which are still trying to recover from a big drop in footfall during the pandemic.

"Before, our competitors were other large local department stores. Then came competition from websites," said Laetitia Henry, general manager of the flagship Printemps Haussmann store in Paris.

"More recently, we have been facing a new international threat in the form of ultra-fast fashion, which can copy a designer dress in three weeks and sell it for less than 10% of the price."

In the US, Macy's is closing stores while Saks Global, parent of upscale department store chain Saks Fifth Avenue, is exploring divestitures to curb debt.

Société des Grands Magasins, which bought the BHV from the Galeries Lafayette group two years ago, is hoping its partnership with Shein is the kind of innovation that will protect it.

SGM said traffic at the BHV store jumped by 50% on the day of Shein's launch, and that a quarter of people who bought at Shein also went on to make other purchases at BHV.

Shein last month said top global fashion market France was a "natural choice" for it to test physical stores, and that its online sales enable it to accurately predict what local consumers want.

Shein did not immediately respond to a Reuters request for comment.

Other big French department stores like Printemps, Galeries Lafayette and LVMH-owned Le Bon Marché have tried to reinvent themselves as lifestyle destinations, offering bespoke luxury experiences to pull in more shoppers.

Le Bon Marché schedules regular events, including concerts and dance, while Printemps offers fine dining, beauty treatments and has an in-store ice rink during the festive season.

"The idea is always to give customers a reason to come," said Henry.

Galeries Lafayette said that more than 100 million euros ($115.06 million) invested in renovations during the pandemic, including to refurbish the stained-glass cupola of its flagship Paris store, helped it to attract more visitors and take its foot traffic to higher levels than in 2019.

But mid-range stores, struggling to adapt and enter the crowded market for luxury experiences, will be watching the publicity Shein has generated for the BHV, said Selvane Mohandas du Ménil, managing director of the International Association of Department Stores.

He said everybody would be curious about the extent to which the extra traffic and spending would trickle down to other parts of the store.

Late payments to brands at BHV have led to shortages of products, hurting sales and leaving workers concerned for their jobs, a union representative said in November.

Overall foot traffic across French retail is still below pre-pandemic levels and increased by just 0.2% in the first nine months of this year, according to France's Alliance du Commerce.

"Every day we hear that physical retail is dying, every day we are told that thousands of jobs are at stake," SGM president Frederic Merlin told France's BFM TV the day Shein's store opened.

Merlin said he welcomed criticism, "but trying to move forward is better", arguing retailers should work with new models like Shein's.

SGM has delayed the opening of five more Shein shops in department stores around France to adjust its marketing strategy. When Shein's store opened some shoppers found its prices too steep.

Those stores were branded Galeries Lafayette under a franchise agreement, but will take the BHV name after Galeries Lafayette ended its agreement with SGM.

The Paris city hall said it would not allow the BHV to host outdoor Christmas events this year because of a "highly controversial context".

When Shein's Paris store opened, France suspended its French marketplace after finding child-like sex dolls for sale on the platform. The suspension proceedings were halted after Shein withdrew all illicit products.

The backlash against Shein also tipped the scales in a European debate over customs duties on low-value parcels, which are expected to come in by 2026 - hitting Chinese retailers like Shein and Temu - in line with a similar suspension of duty-free treatment in the US for small parcels.

"Is Shein really a traffic driver for department stores ... or are you just killing yourself ... That's a big question that everybody is looking at now," Mohandas du Menil said.



LVMH Sales Edge Higher Despite Fashion Slide

FILE PHOTO: A Louis Vuitton logo is seen outside a store on the Champs-Elysees avenue in Paris, France, August 3, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: A Louis Vuitton logo is seen outside a store on the Champs-Elysees avenue in Paris, France, August 3, 2025. REUTERS/Stephanie Lecocq/File Photo
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LVMH Sales Edge Higher Despite Fashion Slide

FILE PHOTO: A Louis Vuitton logo is seen outside a store on the Champs-Elysees avenue in Paris, France, August 3, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: A Louis Vuitton logo is seen outside a store on the Champs-Elysees avenue in Paris, France, August 3, 2025. REUTERS/Stephanie Lecocq/File Photo

LVMH, the world's leading luxury group, said Monday its sales edged higher in the third quarter despite a slowdown in China hitting its fashion and leather goods segment.

The group, whose brands include Louis Vuitton, Dior, Celine and drinks maker Hennessy, took in 18.5 billion euros ($20.6 billion) in the three months to the end of September, beating the consensus of analysts polled by Factset financial data firm.

The 1.2 percent sales gain beat the marginal 0.1 percent increase registered in the second quarter. The group's sales slumped six percent in the first three months of the year.

"Backed by its diverse range of businesses, LVMH remained very solid in an uncertain geopolitical and economic environment," AFP quoted the company as saying in a statement.

But the fashion and leather goods segment saw sales drop five percent excluding currency effects and changes to the business as it was "affected in the third quarter by the slowdown in demand in China."

Louis Vuitton saw its public image take a hit in China after pursuing a local tea company for copying its logo. While it won the case, it provoked a wave of indignation on social media and a call to boycott the brand.

The drop for fashion and leather goods follows the segment posting its first sales gain in two years in the second quarter.

But LVMH's selective retailing division, which includes the Sephora perfume and cosmetics retail chain, posted an eight percent sales increase, while the watches and jewelry and wines and spirits segments both managed six percent gains.

LVMH's share price has dropped 40 percent since the start of the year, with the group losing its place as the leading company on the Paris CAC 40 index in terms of capitalization to L'Oreal.


Saint Laurent Says Designer Anthony Vaccarello to Leave

(FILES) Belgian designer for Saint Laurent Anthony Vaccarello acknowledges the audience at the end of the women's 2018 Spring/Summer ready-to-wear collection fashion show in Paris, on September 26, 2017. (Photo by ALAIN JOCARD / AFP)
(FILES) Belgian designer for Saint Laurent Anthony Vaccarello acknowledges the audience at the end of the women's 2018 Spring/Summer ready-to-wear collection fashion show in Paris, on September 26, 2017. (Photo by ALAIN JOCARD / AFP)
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Saint Laurent Says Designer Anthony Vaccarello to Leave

(FILES) Belgian designer for Saint Laurent Anthony Vaccarello acknowledges the audience at the end of the women's 2018 Spring/Summer ready-to-wear collection fashion show in Paris, on September 26, 2017. (Photo by ALAIN JOCARD / AFP)
(FILES) Belgian designer for Saint Laurent Anthony Vaccarello acknowledges the audience at the end of the women's 2018 Spring/Summer ready-to-wear collection fashion show in Paris, on September 26, 2017. (Photo by ALAIN JOCARD / AFP)

Belgian fashion designer Anthony Vaccarello will leave his post as chief designer at Saint Laurent after a decade in charge, the French house's parent company Kering announced Friday.

"Anthony Vaccarello has played a key role in Saint Laurent's development, helping to strengthen its identity and influence across the worlds of fashion and culture," Kering said in a statement, without giving any reason for Vaccarello's departure.

The designer had hinted at his potential exit at his final show for Saint Laurent on September 29.

Saint Laurent is the last major Kering brand to switch creative director as a ⁠luxury ⁠industry slowdown prompted designer changes last year at Gucci, Balenciaga and Bottega Veneta.

"The focus of the new designer will be in currently under-represented product categories, such as women's daywear and menswear, in high-end leather goods, and less penetrated regions such as China/Asia," Barclays analysts said in a note.

Industry speculation points to Chemena Kamali, currently creative director at Chloe and previously womenswear design director at Saint Laurent, as Vaccarello's likely successor.
Saint Laurent's gross revenues fell by 9% and 6% in 2024 and 2025, before largely stabilizing this year, according to Kering.


Nicole Kidman and Dua Lipa Watch Chanel’s Creative Revival at Paris Fashion Week

Models present creations for Chanel Women's Spring/Summer 2027 collection fashion show as part of the Paris Fashion Week, in Paris on October 5, 2026. (Photo by JULIEN DE ROSA / AFP)
Models present creations for Chanel Women's Spring/Summer 2027 collection fashion show as part of the Paris Fashion Week, in Paris on October 5, 2026. (Photo by JULIEN DE ROSA / AFP)
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Nicole Kidman and Dua Lipa Watch Chanel’s Creative Revival at Paris Fashion Week

Models present creations for Chanel Women's Spring/Summer 2027 collection fashion show as part of the Paris Fashion Week, in Paris on October 5, 2026. (Photo by JULIEN DE ROSA / AFP)
Models present creations for Chanel Women's Spring/Summer 2027 collection fashion show as part of the Paris Fashion Week, in Paris on October 5, 2026. (Photo by JULIEN DE ROSA / AFP)

Chanel’s artistic director Matthieu Blazy sent the fashion house's suits stretching towards sportswear and evening dresses drifting through clouds, with Nicole Kidman, Dua Lipa and Pedro Pascal in the audience as he unveiled his spring-summer 2027 collection.

The Monday night show underscored that a year into his creative revival, Blazy has made the house feel newly unpredictable.

The former Bottega Veneta designer succeeded Virginie Viard, who took over after Karl Lagerfeld ’s death in 2019. Viard’s tenure brought record sales but Blazy’s contribution has been to restore a sense that Chanel’s familiar ingredients can produce something unexpected.

That renewal is visible in his treatment of the house’s symbols: tweed can stretch; formal jackets sit against bare skin; quilted bags turn slouchy.

The appeal lies in giving established clients something recognizable, and newer ones something to reinterpret.

Beneath illuminated birds at the Grand Palais, Blazy's collection traced Gabrielle “Coco” Chanel’s passage from Edwardian constraint towards the freedom she sought in dress.

“It’s about the women within a woman,” Blazy wrote in his notes.

Across 83 looks, that meant expanding the possibilities of a Chanel wardrobe: knits that skimmed the body, masculine tailoring, airy eveningwear and sharply abbreviated skirts.

Raw-edged waistcoats and narrow skirt suits reworked men’s formal clothes. A pearl-embroidered corset top paired with black trousers brought the tension between restriction and ease into focus.

Older fashions lingered in ruffled collars, peplums and traces of corset boning.

The strongest development was Chanel’s new “smocked tweed,” designed to stretch and move with something of athleticwear’s ease. It was a useful proposition for an expensive, familiar garment: preserve its character while improving its possibilities.

Competing patterns and frothy tutus sometimes tipped towards costume. Dres

ses made from layered, printed silk were more persuasive, turning cloud formations and changing light into shifting color, The Associated Press reported.

Model Dyanira Hurbuscher opened and closed the collection — carrying Gabrielle Chanel’s own 2.55 handbag, borrowed from the famed archives.

That element neatly framed the collection’s ambition: continuity with room for change — a balance Blazy’s revitalization of Chanel rests on.

He has made Chanel's heritage feel available for play, backed by serious work in the ateliers.

Lipa wore a sleeveless skirt suit with pink heels. Kidman attended with her daughter Faith Margaret.