Hola Sugarcups,
Paris department store BHV Marais has done exactly what UK High Street retailers have been encouraging Downing Street to do for years. The department store, located only a few hundred metres from Notre-Dame has announced that it will be cutting ties with Shein due to a decline in sales, and the closing of multiple concessions at the top of the store.
Their new owners admit that while ‘having Shein has definitely helped protect our brand’ they have also admitted that Shein was actually a mistake to have because they’re the most modern, aggressive fashion brand. This is something that we have been debating in the UK! So what happened? The store opened in Nov and was seen as a huge coup for BHV. It was the first permanent Shein store in France, taking over the whole of the sixth floor of one of the most famous department stores in the city. The company had also opened five points within Galeries Lafayette stores in provincial cities.
They stated that they would attract younger customers to the store. Customers could purchase a cheap top from Shein and walk out with a designer bag. They were perfect as they provided a mix of high and low fashion. However, there were issues upon opening. There were protestors outside and some were removed. However, there was a massive queue of customers wanting to get in. This really shows that the ultra-fast fashion industry can be very paradoxical.
The head of the France Ready to Wear Federation, called it a ‘black day for French Fashion’, and Shein a ‘symbol of destruction’. Just a few days after it opened, the Finance Ministry of France stated that they would restrict certain parts of the platform due to concerns around illegal stock. They also collected over a hundred thousand signatures on a petition. Disneyland Paris also distanced themselves from the store by cancelling their pop-up Christmas event with BHV. However, it often takes a while for institutions to jump into action. Multiple other brands decided to stop renewing contracts. This meant that there were floors that remained empty in the first half of the year.
When the new management came in this month, it was obvious that they would cut ties with Shein as the store wasn’t making a profit. In the UK it hasn’t been as dramatic but we have had the same debate. Why does this even matter? Some will argue that we pay attention to this because of the De Minimis rule. Anything under £135 can be imported completely tax free. While this seems very technical, retailers such as Shein and Temu gain an advantage as they don’t pay any import duty. This is the biggest distortion in the UK clothing market and very few people outside of the industry know about this.
What Happened, and Why It Took Six Months to Unravel
Over the past year, UK retailers have stated that this is the biggest distortion in UK clothing. A range of UK major retailers are attempting to get rid of this rule. Associated British Foods (Primark’s parent company), Currys, M&S, Argos, ASOS, Kingfisher and the British Retail Consortium (the main trade body) have all lobbied to get rid of this rule. Recently, sixteen UK retailers have written an open letter to the Prime Minister and Chancellor to try and speed up the process. Low-value imports have increased by over 50% in just one year. Helen Dickinson, Chief Executive of the BRC has spoken passionately about this. She explains that 1.6 million packages are taking advantage of this rule daily. This is double the amount last year. UK companies can’t afford to wait anymore.
The Treasury have confirmed that they will be closing this loophole. However, this won’t be until March 2029. This has caused some frustration. The US struggled to get rid of the rule due to potential issues with customs in just 48 hours. Over a million packages built up at JFK airport. The UK have learnt from this and are being cautious. Whilst some may think it makes sense, others feel it gives an unfair advantage to the platforms. This isn’t just a tax issue. The EU have accelerated their plans and want to get rid of the rule by 2026. The US have removed it completely.
This means that UK retailers will be competing on an uneven playing field for a few more years compared to the rest of Europe. Unfortunately, the timing couldn’t be worse. Public opinion around Europe has turned against ultra-fast fashion. The department store would rather lose a key tenant. Numbers Unfortunately, this isn’t just a moral issue. Surveys show that 54% of UK customers would like the government to tighten up the de minimis rule. This figure increases to 68% for Gen Z, the most likely to shop on these platforms. Around 8 in 10 will have purchased something from a Chinese marketplace. Over 40% shop on Shein monthly. Double the amount of older shoppers.
Almost half of British shoppers have purchased from Temu or Shein at least once in the last year. Sales in the UK have increased by a third, to over £2 Billion. This proves that UK customers aren’t just against ultra-fast fashion morally. A large portion of people have mixed opinions. Whilst they want things to change they’re still purchasing that £6 top. There is nothing hypocritical about this as the platforms have an unfair advantage. With the cost of living being so tight nobody wants to wait. This is a genuine opinion. This shows that Europeans aren’t turning away from Shein like the French have. The same amount of French customers were queuing.
As a reader on Bond Street, I don’t think we’ll ever have a BHV moment. We don’t have the infrastructure to do so. British department stores have never invited them. Shein were invited to take over the 6th floor. While there has been much discussion around customs and import duty this will affect the whole market. Losing one tenant won’t have the same impact. I’m interested to see if the image of Paris will affect Westminster. Generally, governments will wait until they’ve got themselves in more trouble politically by not doing anything.
However, the finance ministry may feel more confident now that a heritage department store have come out and said that having a key platform was a bad idea after a lot of backlash. Sixteen of their own retailers are stating that it’s taking too long. Whether Rachel Reeves sees this as an opportunity to speed up the deadline as opposed to France remains to be seen. Honestly, we’re doing as fast as we can. The letter signed by sixteen retailers will probably have more of an impact than anything on the 6th floor of BHV Marais. However, there is an impact.
Now a big European retailer have proven that they can lose a tenant it’s much harder to argue that we should wait. [Note: The content of this article is based on current events. BHV Marais have confirmed that they have ended their partnership with Shein after around 6 months of backlash, brands leaving and a decrease in customers. (South China Morning Post & FashionNetwork, 16-17 June 2026). WWD & Euronews covered the protest.
The French Ready to Wear Federation & Finance Ministry suspended certain parts of the platform. (16-17 June 2025). The UK part of this article is based on current events (2026). Primark’s parent company (Associated British Foods), Currys, M&S, ASOS, Kingfisher, Argos and the British Retail Consortium are all pushing for the UK to get rid of the de minimis customs rule. This will be fully in place by March 2029. UK retailers are pushing for the government to implement this sooner.
However, both the EU (2026) and US have removed it completely. (Bloomberg, RTE, Retail Technology Innovation Hub & Yahoo Finance/Reuters). The statistics relating to consumer opinion on the de minimis rule have been taken from a survey by the Retail Technology Show 2026. (54% of UK shoppers/68% of Gen Z would like it tightened. Gen Z are the most likely to shop on Shein/Temu.) Whether the BHV story will affect UK policy is for analysis.
Until next time, Jasmin x
