Shein Eyes to Establish UK Warehouse Upon London Debut

The decision to open a UK warehouse is closely tied to Shein’s anticipated debut on the London stock market, which, if successful, would be the largest float in the city for a decade. 

Chinese fast fashion behemoth Shein is gearing up to establish its first British warehouse as part of its preparations for a monumental £50bn listing on the London Stock Exchange.

The company, which is now headquartered in Singapore, is focusing its search on the Midlands’ “golden logistics triangle,” a prime area renowned for its logistical advantages.

Shein is reportedly seeking a large site, with requirements ranging from 300,000 to 400,000 square feet, though it is open to considering options as expansive as 600,000 square feet. Over the past few months, a team from Shein has toured approximately 10 potential sites, including locations in Derby, Daventry, Coventry, and Castle Donington. The company is said to prefer a site that is already equipped for ecommerce operations, rather than developing a new facility from scratch.

The decision to open a UK warehouse is closely tied to Shein’s anticipated debut on the London stock market, which, if successful, would be the largest float in the city for a decade. The move is also contingent on ongoing negotiations with its 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 holding discussions with senior British politicians. A successful float could significantly boost London’s flagging stock market, providing a much-needed injection of confidence.

In June, Shein is believed to have confidentially filed initial paperwork with the Financial Conduct Authority, signalling its serious intent to list in London. However, the company is facing scrutiny from some rival retailers who argue that Shein’s use of a legal tax loophole for overseas shipments has provided it with an unfair competitive advantage.

The “golden logistics triangle” in the Midlands is a key target for Shein due to its strategic location, within a four-hour drive of 90% of the British population. The 289-square-mile area is a hub for logistics and warehousing, making it an ideal base for Shein’s UK distribution operations.

Shein has engaged property agents JLL and Savills to assist in its search, with plans to finalise a location by the end of the year. The company aims to have the warehouse fully operational by the third quarter of next year, coinciding with its potential stock market debut.

Originally founded in Nanjing, Shein relocated its headquarters to Singapore in 2021, though its supply chains remain predominantly based in China. While Shein had previously considered listing in New York, tensions between Beijing and Washington have prompted the company to pivot towards London.

Shein’s rapid global expansion continues unabated. Last year, it opened a manufacturing hub in Brazil to serve South American markets and established its European, Middle Eastern, and African headquarters in Dublin. Most recently, Shein expanded its marketplace business to Spanish vendors and launched a pop-up store in South Africa.

A spokesperson for Shein commented, “To support the growth of the business, Shein is actively exploring warehousing locations worldwide. However, Shein has no immediate plans to acquire warehouse space in the UK.”