Fast fashion giant Shein is exploring UK warehouse sites in the Midlands, aligning its plans for a £50bn listing on the London Stock Exchange.
- Shein is focusing on the Midlands’ ‘golden logistics triangle,’ renowned for its logistical benefits.
- The company’s search involves several large sites already equipped for e-commerce operations.
- Shein’s decision is influenced by ongoing negotiations with its current third-party logistics provider, Super Smart Service.
- The anticipated London stock market debut is one of the largest floats in the city for a decade.
The company, now headquartered in Singapore, is focusing its search on the Midlands’ ‘golden logistics triangle,’ a prime area celebrated for its logistical advantages. Shein is reportedly seeking a site ranging from 300,000 to 400,000 square feet, with options as large as 600,000 square feet under consideration.
Over recent months, Shein’s team has evaluated approximately 10 potential sites, including locations in Derby, Daventry, Coventry, and Castle Donington. The preference is for a location already equipped to handle e-commerce operations, rather than developing new facilities.
This decision to open a UK warehouse is closely tied to Shein’s expected London stock market debut. A successful float could significantly boost the city’s stock market, providing a much-needed injection of confidence.
Negotiations with Super Smart Service, Shein’s current third-party logistics provider managing UK orders from Cannock, are ongoing. The warehouse plans also hinge on the outcome of these negotiations.
Shein’s potential listing has garnered attention from senior British politicians. In June, Shein confidentially filed initial paperwork with the Financial Conduct Authority, indicating a serious intent to list in London.
Some rival retailers have raised concerns that Shein’s use of a legal tax loophole for overseas shipments affords it an unfair competitive edge.
The ‘golden logistics triangle’ is targeted by Shein for its strategic location, within a four-hour drive of 90% of the British population. This 289-square-mile area is pivotal for logistics and warehousing, ideal for Shein’s UK distribution operations.
Shein has engaged property agents JLL and Savills in the search, aiming to finalise the location by the end of the year. The warehouse is expected to be fully operational by the third quarter of next year, coinciding with its potential stock market debut.
Despite the rapid expansion, 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.”
Founded in Nanjing, Shein relocated its headquarters to Singapore in 2021, with its supply chains predominantly in China. Geopolitical tensions have driven the company to pivot to London from an initial consideration of New York.
Shein continues its global expansion, having opened a manufacturing hub in Brazil and its European, Middle Eastern, and African headquarters in Dublin. The company also extended its marketplace to Spanish vendors and launched a pop-up store in South Africa.
Shein’s strategic moves indicate robust plans for expansion and significant market influence, particularly with its substantial London stock market debut on the horizon.
