Shein, a Chinese-founded online retailer, has seen substantial growth in its UK revenue, marking a significant prelude to its anticipated IPO on the London Stock Exchange.
- The UK division reported a remarkable increase in revenues to £1.55 billion for 2023, up from £1.12 billion in the previous year.
- Annual profits also saw a substantial rise, reaching £18.7 million compared to last year’s £9.8 million.
- The establishment of a new base in Manchester has been noted as a significant milestone, sparking further expansion and recruitment.
- Shein faces ongoing scrutiny over environmental and labor practices amid its rapid growth in the fast-fashion market.
Shein, an online retail giant originally founded in China and now headquartered in Singapore, has disclosed UK revenues hitting £1.55 billion for 2023. This figure represents a significant leap from the £1.12 billion earned in the previous year, signaling robust growth ahead of its much-anticipated IPO on the London Stock Exchange. According to reports by City AM, Shein’s UK arm also achieved an annual profit of £18.7 million, doubling the previous year’s profit, which stood at £9.8 million.
A focal point of Shein’s growth trajectory is the establishment of a UK headquarters in Manchester, a region already home to key competitors like Boohoo, PrettyLittleThing, and Missguided, which Shein owns. This strategic move is highlighted as a ‘milestone’ by the company and is likely to support broader recruitment and expansion efforts across the UK. Additionally, Shein has actively engaged with the market through pop-up shops in cities such as Liverpool, showcasing some top-selling collections.
Parallel to these developments, Shein is laying the groundwork for a London IPO, with informal investor meetings on the horizon. Having filed confidential documents with the UK’s market regulator in early June, Shein is positioning itself for a potential listing later this year. The flotation is expected to value the company at around $66 billion (£50.3 billion), pegging it among the largest transactions for the London Stock Exchange in the past decade.
Despite these financial accomplishments, Shein continues to navigate ongoing controversies concerning its environmental impact and labor conditions. Allegations regarding the use of forced labor, particularly involving Uyghur workers, have prompted calls for investigation by US lawmakers. Such issues underline the complexities that accompany Shein’s rapid ascent in the competitive fast-fashion landscape.
Shein’s impressive financial performance in the UK sets a promising stage for its upcoming London Stock Exchange IPO, despite enduring ethical challenges.
