Though the story is written in English I don’t think the characters in the story speak English. There are multiple clues in the story which indicate towards some other location. The story is probably based in France. The various clues which indicate a French touch are:

1. The currency – The story talks of money in the form of Francs.

2. The setting of the story – Description and a touch of the parties of Paris.

3. Name of characters – Mme Loisel, Mme Forestier. Such names are usually of French origin.

4. Shop’s location – Palais – Royal.

All the examples stated above help us infer that the main story setting is of France.