Shein is evaluating the Midlands for its first UK warehouse as it prepares for a potential London Stock Exchange listing.
- The company is considering a site between 300,000 to 400,000 sq ft in the Midlands’ ‘golden logistics triangle.’
- A team from Shein has toured potential sites in areas such as Derby and Coventry, aiming for a decision by year’s end.
- The warehouse decision is linked to Shein’s stock market debut and discussions with its third-party provider in Staffordshire.
- If approved, Shein may trade on the London Stock Exchange by year’s end, with the warehouse operational in Q3 next year.
Shein is setting its sights on establishing its first UK warehouse within the Midlands, specifically targeting a strategic site between 300,000 and 400,000 square feet. The proposed location falls within the so-called ‘golden logistics triangle,’ a notable area for its logistical advantages. Representatives from Shein have already conducted approximately 10 site visits in locations including Derby, Daventry, Coventry, and Castle Donington, indicating a clear intent to find an optimal site that aligns with its distribution needs.
The company’s decision on the UK warehouse is closely linked to its upcoming debut on the London Stock Exchange. The outcome of the stock market listing, combined with negotiations with its current third-party order processing provider, Super Smart Service, which operates in Cannock, Staffordshire, will significantly influence Shein’s final warehouse decision. The company aims to conclude its site selection by the end of the year, with plans to have the warehouse operational by the third quarter of the following year.
Shein has engaged property agents JLL and Savills to guide the warehouse location search, emphasizing the importance of this investment to its broader business strategy. The company is also in the process of preparing a prospectus for the UK Financial Conduct Authority (FCA), supporting its imminent flotation valued at £50 billion on the London Stock Exchange. Approval from the FCA will allow Shein to commence trading in London before the year’s close.
Shein, which posted a record $2 billion profit in 2023, has shifted its focus to a London listing after prior considerations for New York. This strategic pivot has been partly influenced by discussions with former UK chancellor Jeremy Hunt, underscoring Shein’s commitment to expanding its operational footprint in the UK. Despite the company’s public interest in a UK site, a spokesperson clarified, “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.”
Shein’s strategic moves underscore its commitment to expanding operations and potential listing on the London Stock Exchange.
