Seven SGM-operated Galeries Lafayette stores in France will be renamed amid Shein launch

In France, the Galeries Lafayette group made its position clear as soon as the Société des Grands Magasins announced its plan to introduce ultra-fast-fashion brand Shein into five regional Galeries Lafayette stores that SGM has operated for several years. After weeks of negotiations, and on the eve of Shein taking up more than 1,000 square metres at BHV, the two parties formally acknowledged their disagreement in a joint press release.

“Galeries Lafayette and the SGM group have agreed to terminate the affiliation agreements that have bound them since 2021 for the seven stores that SGM owns and operates under the Galeries Lafayette banner,” read the statement. “These stores are located in Angers, Dijon, Grenoble, Le Mans, Limoges, Orléans, and Reims.”

Frédéric Merlin‘s company SGM has announced that it will operate these department stores under a new name, to be revealed shortly.

“This decision stems from a strategic divergence within the collaboration,” read the joint press release. “This collaboration will end in the coming weeks, according to a timetable which is currently being finalised.”

These stores, located in prime sites in major French cities, currently carry numerous Galeries Lafayette own-brand ranges and brands listed by the Galeries Lafayette group’s central buying office. Due to this, the continuity of operations at these locations is now in question.

The two parties state that they are “pursuing their discussions in a constructive spirit and doing their utmost to ensure an orderly transition that respects teams and customers.” Nonetheless, customers and employees will naturally be concerned about this situation.