BHV Responds to Supplier Doubts and Shein Backlash with Sweeping Strategy Shift

Caught in the crosshairs of a recent Shein controversy, BHV has proactively reached out to its 3,000 suppliers with a comprehensive letter designed to allay concerns regarding late payments. This move comes at a critical time, as accusations have led to supplier departures and threaten potential sales during the crucial festive season for the French department store.

The three-page letter, signed by managing director Karl-Stéphane Cottendin and initially revealed by La Lettre, seeks to reassure suppliers and reset commercial relationships. Acknowledging that the current "transitional period may have weakened our commercial relationships," the communication outlines a commitment to a completely new settlement model. BHV plans to introduce an instant sales commission system between December 2025 and March 2026, drawing inspiration from leading online practices. This innovative system promises daily receipt of sales proceeds, net of commission, through a fully automated process, eliminating delays and cashflow risks for suppliers. The letter explicitly states that the retirement of the Galeries Lafayette banner in regional stores was, in part, to facilitate the deployment of this brand-new model.

Beyond payment reforms, the document confirms a significant strategic shift for the network. All nine stores previously operating under the Galeries Lafayette banner in the regions will now officially adopt the BHV name. Additionally, BHV is set to launch its own-brand label, encompassing fashion, beauty, and home categories. This new private label aims to strike a balance of quality, price, and durability, offering essential items complemented by exclusive, one-off collaborations.

A substantial portion of the letter details the extensive transformation planned for the flagship Paris store, where the recent Shein pop-up is described as merely "the first visible step" in a broader network-wide evolution. The ground floor of the Paris location will see a reduction in window displays, reimagined as a "central square" flanked by "very busy" thoroughfares dedicated to accessories, jewellery, leather goods, beauty, and second-hand goods. The basement area will undergo a streamlining of its DIY offerings to make way for a spacious 1,000-square-metre food hall.

Further structural changes within the Paris store include the consolidation of menswear and womenswear collections on the first floor. Floors two through five will be dedicated to home goods, kitchenware, bedding, culture, and electronics. BHV also intends to leverage B2B partnerships as a growth driver for its Home offer, collaborating with magazines and collectives of decorators. The rooftop area, situated above the location that hosted the Shein pop-up, is slated for redevelopment in late 2026, with plans for "more ambitious dining and events projects."

The controversy has already led to a rapid increase in brands exiting BHV, either in direct response to Shein's presence or amid ongoing accusations of unpaid bills. Notable departures recently include the SMCP group (Sandro, Maje, and Claudie Pierlot) and luxury conglomerate LVMH (Dior Parfums, Guerlain, among others). In response to the backlash, BHV has announced an unspecified postponement of the planned openings of five Shein stores in its regional locations, specifically in Dijon, Reims, Grenoble, Angers, and Limoges.