The Telegraph: Shein considering UK warehouse ahead of IPO

Chinese fast fashion retailer Shein is considering opening a warehouse in the UK as it continues its plan to launch an initial public offering (IPO) on the London Stock Exchange (LSE), according to The Telegraph. The source reveals that Shien is looking for a large-scale site between 300,000 and 600,000 square meters in the Midlands, UK, and about ten potential sites have already been visited by members of the Shein team.

A spokesperson for Shein told The Telegraph: "To support the growth of the business, Shein is actively exploring warehouse locations around the world. However, Shein has no immediate plans to acquire warehouse space in the UK."

Despite this statement, there are rumors that Shein has hired real estate firms JLL and Savills for advice in the search for a warehouse and plans to secure a location by the end of the year.

The possibility of opening a warehouse in the UK is linked to Shein's intention to list on the London Stock Exchange, for which it appears to have filed confidentially with the Financial Conduct Authority in June, according to fashionunited.uk . This, despite the challenge efforts of a number of UK politicians and human rights organizations who argued that the lack of transparency of the Shein supply chain, mass production and the resulting environmental problems should be reasons to stop stock market debut.

Shein operates an online marketplace that sells a wide range of merchandise, although its core business is the production and sale of Shein's own brands, primarily women's clothing. Shein uses a network of suppliers that are mostly based in China, which differs from traditional manufacturing processes. Most of the garments Shein sells are made in Guangzhou, China by its approximately 5,400 suppliers. Although Shein does not disclose financial data publicly, Coresight Research estimates that the company's revenue will reach $50 billion this year, up 55% from last year.

"Shein has recently seen a very strong boost, which could play a favorable role in its IPO plans," said Erik Lautier, e-commerce expert at the consulting firm AlixPartners, quoted by Reuters in June.

Shein is targeting a valuation of around £50bn in a London listing, according to Sky News. The company declined to comment on its IPO plans or valuation.