Chinese fashion giant Shein is set to open its first warehouse in Britain as part of its preparations for a massive £50bn listing on the London Stock Exchange.
The company, now headquartered in Singapore, is focusing its research on the “Golden Logistics Triangle” in the Midlands, a key region known for its logistics advantages.
Sheen is reportedly looking for a large site, with requirements ranging from 300,000 to 400,000 sq ft, although it is open to looking at options as large as 600,000 sq ft. Over the past few months, a Sheen team has toured around 10 potential sites, including in Derby, Daventry, Coventry and Castle Donington. The company is said to prefer a site that is already equipped for e-commerce operations, rather than developing a new facility from scratch.
The decision to open a UK warehouse is closely tied to Shein’s anticipated London Stock Exchange flotation, which if successful would be the city’s biggest IPO in a decade. The move is also conditional on ongoing negotiations with third-party logistics provider Super Smart Service, which currently manages the brand’s UK orders from a warehouse in Cannock.
The potential IPO has already attracted interest at the highest levels, with the company reportedly in discussions with senior British politicians. A successful listing could significantly boost London’s battered stock market, providing a much-needed boost to confidence.
In June, Sheen is believed to have secretly filed its initial paperwork with the Financial Conduct Authority, signaling a serious intention to list in London. However, the company is facing scrutiny from some rival retailers who allege that Sheen’s use of a legal tax loophole for overseas shipments has given it an unfair competitive advantage.
The Midlands’ ‘Golden Logistics Triangle’ is a prime target for Shein due to its strategic location, with 90% of the UK population within a four-hour drive. The 289 square mile area is a logistics and warehousing hub, making it an ideal base for Shein’s UK distribution operations.
Shen has contracted estate agents JLL and Savills to assist with the search, with plans to identify a location by the end of the year. The company aims to have the warehouse fully operational by the third quarter of next year, in time for its potential stock market listing.
Founded in Nanjing, Shen moved its headquarters to Singapore in 2021, though its supply chains remain largely based in China. While Shen had previously considered listing in New York, tensions between Beijing and Washington prompted the company to shift to London.
Sheen continues its rapid global expansion relentlessly. Last year, the company opened a manufacturing center in Brazil to serve the South American market and established its EMEA headquarters in Dublin. More recently, Sheen expanded its marketplace to include Spanish sellers and launched a pop-up store in South Africa.
A Sheen spokesperson commented: “To support business growth, Sheen is actively exploring storage locations around the world. However, Sheen has no immediate plans to acquire storage space in the UK.”
Comments are closed, but trackbacks and pingbacks are open.