Frédéric Merlin, the CEO of the Société des grands magasins (SGM), is at the forefront of challenges posed by Shein, the Asian e-commerce giant. This company, criticized for unfair competition and environmental pollution, is set to open its first permanent physical store in Paris’s historic BHV on a Wednesday in the near future.
Frédéric Merlin’s Background and Business Ventures
At just 34 years old, Merlin has already made a significant mark in the retail industry. He was raised in Vénissieux, near Lyon, by a father who managed a small plumbing business and a homemaker mother. Alongside his sister, Maryline, he co-founded the SGM in 2021. Their current fortune is estimated at €600 million, ranking them 233rd in France according to *Challenges*.
- Frédéric Merlin has been supported by businessman Jean-Paul Dufour, who owns 42.5% of SGM’s subsidiaries.
- SGM manages multiple shopping centers and has acquired the BHV since 2023.
- The company operates seven provincial Galeries Lafayette, which are undergoing changes to accommodate the new Shein store.
Backlash Against Shein’s Entrance
The announcement of Shein’s store opening has sparked controversy. Several brands have decided to exit the BHV as a response. Suppliers have expressed dissatisfaction due to mounting unpaid bills linked to what Merlin refers to as “tool issues” rather than cash flow problems.
- SGM was denied support from the Banque des Territoires for purchasing BHV’s premises.
- The company was excluded from the Union of Central City Commerce.
- Galeries Lafayette has opposed Shein’s presence in its retail spaces.
Community Reactions
Critics, including Yann Rivoallan from the French Women’s Ready-to-Wear Federation, have questioned Merlin’s integrity. They accuse him of not collaborating effectively and misrepresenting his support from Paris Mayor Anne Hidalgo regarding Shein.
According to Nicolas Bonnet-Oulaldj, an official at the Paris City Hall, Merlin is not genuinely invested in collaboration, which has sparked further community concern.
Lessons Learned and Future Aspirations
Reflecting on his journey, Merlin admits he underestimated the political and media scrutiny associated with running such an iconic establishment. He acknowledges that there were opportunities to manage the situation better but maintains that he is dedicated to making the BHV a profitable venture.
With a work ethic that sees him putting in 14-hour days, he prides himself on his entrepreneurial spirit and willingness to take risks, such as introducing innovative experiences at BHV.
As a father and the primary protector of his family, Merlin continues to navigate his role as both a leader and a family man, striving for success amid a complex retail landscape influenced by brands like Shein.
