Chinese fast fashion giant Shein is gearing up to establish its first UK department store as part of preparations for a monumental £50 billion listing on the London Stock Exchange.
The company, now headquartered in Singapore, is focusing its search on the ‘golden logistics triangle’ of the Midlands, a key area known for its logistics benefits.
Shein is reportedly looking for a large site, with requirements ranging from 300,000 to 400,000 square feet, although it is open to options as extensive as 600,000 square feet. Over the past few months, a Shein team has visited around ten potential sites, including sites in Derby, Daventry, Coventry and Castle Donington. The company would prefer a site already equipped for e-commerce operations, rather than developing an entirely new facility.
The decision to open a UK warehouse is closely linked to Shein’s expected debut on the London stock market, which, if successful, would be the city’s biggest stock exchange in a decade. The move is also subject to ongoing negotiations with current third-party logistics provider, Super Smart Service, which currently manages the brand’s UK orders from a warehouse in Cannock.
Shein’s potential listing has already attracted attention at the highest levels, with the company reportedly in talks with leading British politicians. A successful IPO could significantly boost the London stock market, providing a much-needed injection of confidence.
Shein is believed to have confidentially filed initial paperwork with the Financial Conduct Authority in June, signaling its serious intention to list in London. However, the company is under scrutiny from some rival retailers who claim Shein’s use of a legal tax loophole for overseas shipments has given it an unfair competitive advantage.
The Midlands ‘golden logistics triangle’ is a key target for Shein due to its strategic location, within a four-hour drive of 90% of the UK population. The 289 square kilometer area is a hub for logistics and warehousing, making it an ideal base for Shein’s UK distribution operations.
Shein has engaged estate agents JLL and Savills to assist in the search, with plans to finalize a location by the end of the year. The company aims to have the warehouse fully operational in the third quarter of next year, coinciding with its potential stock market debut.
Originally founded in Nanjing, Shein moved its headquarters to Singapore in 2021, although its supply chains remain primarily based in China. Although Shein had previously considered listing in New York, tensions between Beijing and Washington have prompted the company to pivot to London.
Shein’s rapid global expansion continues unabated. Last year it opened a production center in Brazil to serve South American markets and established its European, Middle Eastern and African headquarters in Dublin. Recently, Shein expanded its market operations to Spanish suppliers and launched a pop-up store in South Africa.
A Shein spokesperson commented: “To support the company’s growth, Shein is actively exploring warehouse locations around the world. However, Shein has no immediate plans to acquire warehouse space in the UK.”