Shein, the online fast fashion behemoth, has once again shaken up the UK retail landscape, reporting a dramatic surge in sales and profits for 2024. According to filings reviewed by the Evening Standard and Metro, Shein Distribution UK Ltd saw its sales leap by 32.3% to £2.05 billion last year, a staggering jump that cements its position as a dominant force in the British fashion market. But as the company eyes a public listing in Hong Kong, it faces mounting scrutiny over its business practices, tax strategies, and alleged human rights abuses.
The numbers alone are enough to turn heads. Shein’s pre-tax profit in the UK soared to £38.3 million in 2024, up from £24.4 million the previous year—a 56% increase. The company’s formula of ultra-affordable, trend-driven clothing has proven irresistible to young shoppers, especially as traditional high street rivals like Asos and Boohoo scramble to keep pace. Shein’s ability to churn out new styles at breakneck speed, often at prices that seem too good to be true, has made it a go-to destination for fashion-forward consumers watching their wallets.
Yet, even as Shein celebrates its financial success, it’s not all smooth sailing. The company itself has cautioned that “higher inflation and increased cost of living may affect customer purchasing habits.” With the UK still grappling with economic uncertainty, and many households feeling the pinch, there’s a real question as to whether the boom times can continue. According to Metro, Shein’s recent expansion included opening new offices in London and Manchester, as well as a temporary pop-up shop in Liverpool—moves that signal its commitment to the UK market. But the company’s own warnings suggest it isn’t immune to the broader economic headwinds buffeting the retail sector.
Shein’s rise has coincided with a period of profound upheaval on the British high street. The collapse of beloved chains and the struggles of bricks-and-mortar retailers have become all too common. Just this week, Claire’s, the accessories retailer with more than 300 stores across the UK and Ireland, entered administration, putting over 2,000 jobs at risk. As Sean Moran, a restructuring and insolvency partner at law firm Shakespeare Martineau, told Metro, the “fashion and accessories space has been flooded with new competition in recent years.” He points to the likes of Shein and its rival Temu, both of which have exploited “low value import loopholes” to undercut traditional retailers. Moran added, “Ongoing geopolitical considerations, including Trump’s much publicised tariff onslaught, combined with a general downturn in consumer and high street spending, created a perfect storm for the well-loved brand.”
Shein’s business model has drawn both admiration and criticism. While its low prices and endless variety have won it legions of fans, questions swirl around its tax practices and supply chain ethics. The company has been accused of bundling small packages to reduce tax payments—a strategy that, while legal, has prompted the UK Labour Government to review policies on low-value imports. According to the Evening Standard, concerns have been raised that these practices give Shein and similar online retailers an unfair advantage over their competitors. The government’s review could spell changes for the online retail landscape, potentially leveling the playing field for traditional stores struggling to compete.
Shein’s ambitions extend far beyond the UK. Founded in China and now headquartered in Singapore, the company has set its sights on a public listing. Initially, Shein pursued a listing on the London Stock Exchange, but its campaign ran aground amid allegations of human rights abuses in its supply chain—specifically, claims of forced labor in the Xinjiang region of China. Beijing has denied any abuses, and Shein has repeatedly stated it has “zero tolerance” for abuse in its supply chain. Nevertheless, the controversy proved too much for London, and the company is now reportedly nearing a listing in Hong Kong after failing to secure approval from China’s securities regulator for an overseas listing.
As Shein seeks to expand its offerings, moving beyond fashion into toys and crafts, the company’s meteoric growth shows no sign of slowing. But with growth comes greater scrutiny. Politicians, campaigners, and rival retailers are asking tough questions about how Shein does business—from its supply chain transparency to its environmental impact and labor practices. The company’s response has been to emphasize its commitment to ethical standards, but critics say more transparency is needed.
Meanwhile, the broader retail sector is undergoing a transformation. The rise of social media platforms like Instagram and TikTok has shifted the way people shop, with influencers and viral trends driving demand for fast, disposable fashion. Shein has capitalized on this shift, leveraging social media to reach younger consumers and build a global brand. But the very forces that have propelled its rise—digital disruption, relentless price competition, and a focus on speed—are also contributing to the struggles of established retailers.
For shoppers, the allure of Shein is clear: low prices, endless choice, and the thrill of the new. But behind the glossy website and flashy marketing, the company faces a raft of challenges. Regulatory scrutiny, political pressure, and the ever-present risk of consumer backlash over labor and environmental issues all loom large. As Shein prepares for its next chapter—a potential IPO in Hong Kong—it must navigate a landscape that is as fraught with risk as it is rich with opportunity.
So where does this leave the British high street? The fate of legacy retailers like Claire’s, and the rise of digital juggernauts like Shein, encapsulate the seismic shifts underway in the world of retail. As consumers weigh price, convenience, and ethics, the choices they make will shape the future of shopping in the UK and beyond. For now, Shein’s star continues to rise, but the story is far from over.
As the dust settles on another year of change and challenge, the only certainty is that the fashion world will keep evolving—sometimes in ways no one can predict.
