French authorities are taking measures to prevent stolen luxury goods from being resold through online platforms such as Vinted, Amazon, and eBay.
Last Saturday, in the upscale commercial district of Place Vendôme in Paris, six masked individuals used a road barrier as a battering ram to violently smash the display window of a Louis Vuitton (ASX: LVMUY) boutique, while dozens of people dressed in black cheered them on. The looters ultimately failed to break into the store, but came dangerously close. A Louis Vuitton employee said: "We installed special windows that can withstand impacts, but mostly it was luck." He added: "It's sad. These people are not protesters, but people who specifically came out to smash and loot."
Other retailers were not so fortunate during the riots and looting that erupted across France last weekend. The unrest occurred after protests over inadequate school funding and the high cost of living.
In Paris, shops on major commercial streets such as the Champs-Élysées are already accustomed to installing protective measures before protests or sports celebrations that could turn violent. Authorities also frequently require construction sites to properly secure their materials. However, the recent wave of protests did not follow the usual coordination arrangements between unions and police, leading to what appears to be a serious failure in advance preparations.
On Saturday, law enforcement officers were quickly overwhelmed by the surging crowds. An employee at a Dior store on Rue Royale in Paris said: "We could see protesters pushing the police back along the street." The Dior store employees lowered the security shutters at around 4 p.m., saving the store from damage. But across the street, the display windows of a Ralph Lauren store were smashed, and a Kenzo boutique was looted.
The Dior employee added: "I don't understand how the police could be so unprepared. My children use social media, and they seemed to know in advance that the streets would be like a battlefield this weekend."
As curfew measures helped reduce the unrest, the situation in French cities calmed down on Monday evening. Videos circulating on social media over the weekend showed at least a dozen private security guards forming a defensive line around the Dior flagship store on Avenue Montaigne. One of the guards, Zaur Djabrailov, said on LinkedIn that despite protesters warning them to go home for their own safety, most guards voluntarily extended their working hours on Saturday. He said they did so "not for glory, nor for praise, but out of solidarity."
A Burberry boutique in Paris was also targeted, while Louis Vuitton and Hermes (ASX: HESAY) stores in Marseille were looted. A Graff jewelry store at Place Vendôme in Paris remained closed on Monday, with its display windows smashed. Although a Dior boutique on Rue Saint-Honoré reopened, its facade was defaced with anti-police slogans and other graffiti.
French authorities are currently working to prevent stolen goods from being resold online. On Monday, French government ministers held a meeting with representatives of second-hand trading and online platforms including Vinted, Amazon, eBay, and Meta to discuss how to remove suspicious product listings and identify relevant sellers. Some luxury goods are also equipped with individual serial numbers or electronic chips, which can help compare stolen items with merchants' inventory records.
Vinted said on Monday: "Since last weekend, our teams have acted immediately to identify and remove listings that may involve stolen goods, and have strengthened monitoring of suspicious product listings." The company added: "We are actively cooperating with law enforcement agencies and French authorities."
Other major retailers were also targeted. Multiple stores of sportswear retailer JD Sports were looted, and approximately 20 Sephora beauty stores across France as well as an Apple store in Lille were also affected. In central Paris, a Tesla showroom was defaced, with slogans on the walls accusing the company's CEO Elon Musk of being a Nazi. A nearby Société Générale branch was also forced to close. Its entrance was splashed with pink paint, and wooden boards covering the display windows bore slogans such as "F--- the National Rally" and "F--- everything!" The "National Rally" (RN) refers to France's far-right party, the Rassemblement National.
Several committees representing businesses on the Champs-Élysées, Rue Saint-Honoré, Place Vendôme, and other upscale commercial districts in Paris said they "condemn in the strongest terms" the attacks on stores, calling them "completely unjustifiable."
The damage caused by the riots was not limited to multinational corporations. French Business Minister Serge Papin said preliminary estimates showed that at least 3,000 businesses nationwide were affected by the unrest. The French government has promised emergency financial and employment support for these businesses. According to estimates by Morningstar, insurance payout costs are expected to reach 1 billion to 1.2 billion euros, exceeding the 730 million euros in insured losses from the 2023 riots.
Pierre Bosche, president of the Confederation of French Traders, said: "Behind every smashed storefront window, there is a business owner, employees, families, and often years of hard work. We refuse to let store operators once again become victims of violence that has nothing to do with them."
Near Gare du Nord in Paris, the owner of a small mobile phone repair and convenience store said that on Sunday evening, about 100 young people dressed in black and wearing hoods tried to break into his shop, and he felt his life was in danger. He estimated that repair costs would be between 7,000 and 10,000 euros. Holding back tears, the shop owner said: "Facing so many people attacking alone behind a glass window for a full 15 minutes is very long." He added that he had called the police for help at the time, but no officers ever came.