Shein’s UK Business Hits New High with £2bn in Sales

Chinese-founded fast fashion giant Shein saw its UK sales soar by over a third last year, delivering a significant boost to its profits, according to newly released 2024 financial accounts.

Sales to UK customers surged to £2.05 billion, marking a 32.3% increase compared to the previous year. This impressive revenue growth helped push Shein’s pre-tax profits in the UK up by 57%, rising from £24.4 million in 2023 to £38.3 million in 2024.

Despite its strong performance, the company has acknowledged potential headwinds in the coming year, warning that “higher inflation and increased cost of living may affect customer purchasing habits.”

Shein could also face fresh challenges from regulatory changes, including possible new import taxes. The UK government has launched a review of the current exemption on customs duties for packages valued under £135. If changed, this could erode one of the advantages that helped fuel Shein’s rapid growth in the UK market.

A similar move in the United States has already prompted Shein to raise its prices. There, President Donald Trump eliminated the “de minimis” tax exemption for low-value imports — previously allowing goods worth up to $800 (£590) to enter the country tariff-free. That exemption had enabled fast fashion retailers like Shein and rival Temu to offer ultra-low prices, but domestic retailers argued it was giving foreign firms an unfair advantage and endangering UK High Street businesses.

Founded in China but now headquartered in Singapore, Shein has built its empire on affordability, constant product rotation, and a highly responsive supply chain. The brand is known not only for its vast catalogue of trend-driven fashion but has also expanded into toys, games, homeware, and kitchen items, further broadening its consumer appeal.

The company continues to pursue growth in Western markets. In June 2024, it took a major step toward going public by filing preliminary paperwork for a potential listing on the London Stock Exchange, the BBC understands.

However, Shein’s rapid rise has not been without controversy. The company has come under increasing scrutiny over alleged labour rights abuses in its supply chain, as well as concerns about the environmental sustainability of its fast fashion model.

“Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK.

He added, “If the UK believes that labour standards matter, then regulations need to be in place to hold companies such as Shein accountable.”

The financial filings for Shein Distribution UK Ltd — the brand’s UK operation — also highlighted key business developments over the past year. Among the “significant milestones” were the opening of two new offices in Kings Cross and Manchester, the launch of a pop-up store in Liverpool, and a festive-themed bus tour that travelled to 12 cities across the UK.

As of 31 December 2024, Shein UK employed 91 staff, including 68 women and 23 men. Most of the workforce provided market expertise specific to the UK. The company’s gender diversity at senior levels was also noted, with two female directors and five female senior managers in place at year-end.

Looking ahead, Shein faces a delicate balance — continuing its rapid expansion in Western markets while navigating increasing regulatory scrutiny and public pressure to improve its social and environmental credentials.