As the end of year festivities approach, several prestigious brands have announced their departure from the large Parisian department stores BHV, explains the “The World”. Among them are the Dior, Guerlain and Sandrobelonging to the SMCP groupas well as other smaller brands. The movement was confirmed by Frédéric MerlinCEO of BHV, in an internal message shared on Instagram.
Second Merlin, to arrival of fast fashion giant Shein to the BHV space, opened on November 5th, was one of the main factors that motivated the decision of several brands to abandon the store.
“Since the arrival of Shein to BHV, several smaller brands chose to leave our stores”, he explained. French brands such as LOVE e Talm had also already left protest against the presence of Sheinaccusing the company of unfair competition and environmental pollution.
Payment delays
According to sources close to SMCP, repeated delays in payments acted as a reason for their brands’ exit (Sandro, Maje, Claudie Pierlot and Fursac), although the presence of Shein also played a role in the decision. Frédéric Merlin, for his part, guarantees that “there are no debts, delays or non-compliance with financial obligations on the part of these brands”seeking to devalue the dimension of the financial problem.
The departure of these brands takes place just before Christmas, which highlights the tension in the sector and BHV’s challenges in maintaining its attractiveness to luxury consumers. Merlin emphasizes, however, that these withdrawals “in no way do they call into question the solidity of the group or the relevance of its strategy”, adding that the Shein space attracted more than 50 thousand visitors in the first week.
Other withdrawals and impact on the BHV space
In recent months, other brands also abandoned BHVincluding Le Slip Français e Maison Lejaby (lingerie)due to overdue bills, as well as, according to unions, the jewelry Swarovski. Agnès b., Banana Moon explicitly mentioned the partnership with Shein as the reason for leaving.
BHV, which was already facing deserted sectionsespecially in the areas of DIY and fine arts, is now seeing an increase in empty and boarded-up spaces. THE leaving Disneyland Paris worsens the situation.
Shein: the point of contention
The presence of Shein in BHV has been widely criticized. Phere you are, a fast fashion giant represents direct competition and a threat to the store’s reputation, traditionally associated with luxury and quality products.
The decision to open a Shein branch in the heart of BHV is seen as a “strategic error” by some industry sources, who consider that the coexistence of luxury brands and fast fashion is difficult to manage.