Shein, the Chinese-founded fast-fashion juggernaut now headquartered in Singapore, has taken a commanding leap forward in the United Kingdom’s retail landscape. According to newly released filings at Companies House and reporting by Sharecast.com, Shein’s UK sales soared by 32.3% in 2024, reaching a record £2.05 billion. This surge marks the first time Shein’s UK arm has surpassed the £2 billion threshold, a milestone that cements its status as a major force in British fashion retail.
But the numbers tell only part of the story. Pre-tax profits for Shein Distribution UK Ltd jumped a staggering 57% to £38.3 million (up from £24.4 million the previous year), underscoring the company’s ability to convert rapid sales growth into solid earnings. The UK now stands as Shein’s third-largest market globally, trailing only the United States and Germany, as noted by The Guardian.
Shein’s meteoric rise is fueled by a business model that has upended traditional retail. The company’s ultra-low prices, relentless focus on fast-changing trends, and broadening product range—from clothing to kitchenware, toys, homeware, and beauty—have proved irresistible, especially to younger, cost-conscious shoppers. Louise Deglise-Favre, a senior apparel analyst at GlobalData, explained to The Guardian that Shein’s “aggressive pricing and trend-led variety” allowed it to “retain its position as the UK’s sixth largest clothing and footwear retailer” in 2024. She suggested that, with its current momentum, Shein could soon overtake Sports Direct to break into the top five.
Indeed, Shein has already overtaken Boohoo in UK sales and is closing in on Asos, according to Sharecast.com. The company’s expansion has been visible not only online but also in the physical world: Shein opened new offices in London’s King’s Cross and Manchester last year, hosted a pop-up store in Liverpool, and even ran a Christmas bus tour across 12 UK cities. The UK division’s staff numbers almost trebled in 2024, rising to 91 employees, most of whom are focused on marketing. Women make up 68 of the workforce and hold two of the company’s director roles, underscoring a significant female presence in the UK arm’s leadership structure.
Shein’s rapid ascent, however, is not without controversy. The retailer has faced mounting scrutiny over working conditions in its supply chain and the environmental impact of its fast-fashion business model. Amnesty International UK’s economic affairs programme director, Peter Frankental, voiced concerns to The Guardian, stating: “No company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains. If the UK believes that labour standards matter, regulations need to be in place to hold companies such as Shein accountable.”
Perhaps the thorniest issue for Shein has been allegations related to labour abuses in China’s Xinjiang region. Politicians and human rights groups have raised questions about forced labour in the region’s supply chains, a charge Shein flatly denies. The company insists it has a “zero-tolerance policy” on forced labour, according to Sharecast.com. Despite these denials, the issue has cast a shadow over Shein’s attempts to secure a public listing in the UK. After failing to obtain regulatory approval for a London IPO—amid disagreements over supply chain risk disclosures tied to Xinjiang—the company filed to float in Hong Kong in June 2024, a move widely seen as an attempt to pressure UK regulators and keep its options open.
Shein’s growth in the UK has also benefited from the so-called “de minimis” import rule. This policy allows parcels valued under £135 to enter the country tariff-free, enabling Shein to ship goods directly from factories in China at extremely low cost. Although most parcels still attract VAT, the absence of import duties has given Shein and similar platforms a clear price advantage over domestic retailers. Not surprisingly, this has drawn the ire of British high street competitors, who argue that the rule allows foreign e-commerce giants to undercut local businesses.
The UK government, responding to mounting pressure, has launched a review of the “de minimis” exemption. Chancellor Rachel Reeves pledged in 2024 to examine the policy, echoing moves already made in other major markets. The United States, under former president Donald Trump, scrapped a similar tax break, prompting Shein to raise prices for American customers. The European Union, too, is phasing out its own low-value import waivers. If the UK follows suit, Shein’s pricing edge could be blunted, potentially slowing its momentum. The company itself has warned that higher import charges, along with inflation and cost-of-living pressures, could weigh on future sales.
Shein’s response to these challenges has been multi-pronged. The company continues to diversify its product lines, adding toys, homeware, and beauty to its already vast clothing catalog. It has also made a concerted effort to build a local presence, not only through physical offices and pop-up events but also by ramping up its UK-based workforce. According to company filings, most of the new hires are focused on marketing and market expertise, suggesting a strategy aimed at deepening its connection with British consumers and staying ahead of shifting trends.
Yet the future remains uncertain. The ongoing review of import exemptions, the unresolved questions over supply chain transparency, and the broader debates about fast fashion’s environmental toll all pose significant risks. Rights groups and some politicians continue to push for stricter regulations to ensure that companies like Shein are held accountable for labour practices throughout their global supply chains.
Meanwhile, Shein’s pursuit of a public listing remains in flux. The company’s initial bid to list in London was stymied by regulatory concerns, particularly over disclosures related to Xinjiang. Its subsequent Hong Kong filing is widely seen as both a fallback and a bargaining chip, keeping the door open for a future London IPO should the regulatory climate change.
For now, Shein’s trajectory in the UK is one of remarkable growth, strategic adaptation, and mounting scrutiny. Whether it can sustain this pace—and at what cost to its reputation and business model—remains to be seen. As the UK government weighs new rules and the company’s public listing ambitions hang in the balance, the coming year promises to be a pivotal one for Shein and the broader fast-fashion sector.
The story of Shein’s UK surge is a microcosm of the challenges and opportunities facing global e-commerce in an era of shifting regulations, ethical scrutiny, and relentless competition. For British shoppers and retailers alike, the outcome will shape the future of fashion on the high street and beyond.
