Shein, the global fast-fashion juggernaut, has set the UK retail world abuzz with a remarkable surge in sales and profits for 2024, even as it navigates a labyrinth of regulatory and political challenges on its quest for a public listing. The company’s UK business, Shein Distribution UK Ltd, reported sales of £2.05 billion ($2.77 billion) for the year—a 32.3% leap from 2023, according to filings reviewed by Reuters and BBC. This robust performance cements the UK as Shein’s third-largest market after the United States and Germany, underscoring the retailer’s growing influence on British high streets and online shopping carts alike.
Shein’s bottom line reflected the top-line growth: pre-tax profits soared 56.6% to £38.25 million in 2024, up from £24.4 million the previous year. The BBC noted that these gains came despite the backdrop of higher inflation and a cost-of-living crunch, which the company itself acknowledged could affect customer purchasing habits in the future. Nevertheless, Shein’s aggressive expansion strategy—marked by the opening of new offices in Kings Cross and Manchester, a pop-up shop in Liverpool, and a festive Christmas bus tour across 12 UK cities—appears to be paying off handsomely.
Shein’s meteoric rise in the UK has not gone unnoticed by its competitors. The company’s ultra-low prices, relentless promotions, and rewards programs have helped it snatch market share from established brands like Asos and H&M, especially as inflation-weary consumers hunt for bargains. According to The Independent, Shein’s UK site now offers everything from £7.99 dresses and £15 jeans to toys, craft supplies, and storage units, broadening its appeal far beyond just fast fashion.
But Shein’s success story is not without its complications. The company’s pursuit of a public listing has been anything but straightforward. Initial ambitions for a New York IPO were dashed amid mounting criticism from US politicians and regulatory roadblocks from China’s securities authorities, particularly as tensions between China and the US escalated. A subsequent attempt to list in London met similar resistance, with British lawmakers and advocacy groups raising red flags over alleged labor abuses and the environmental toll of Shein’s business model.
Amnesty International UK’s economic affairs programme director, Peter Frankental, was blunt in his assessment. “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,” he told BBC. “If the UK believes that labour standards matter, then regulations need to be in place to hold companies such as Shein accountable.”
With both New York and London proving inhospitable, Shein confidentially filed for an IPO in Hong Kong in July 2025, as reported by Reuters and The Guardian. This move comes as the retailer faces not only ongoing legal battles with rival Temu but also shifting regulatory winds that threaten its low-cost business model.
One of the main drivers behind Shein’s ability to offer rock-bottom prices has been the so-called “de minimis” customs exemption, which allowed low-value e-commerce packages to enter major markets like the US and UK largely tariff-free. This policy enabled Shein to ship goods directly from factories in China to shoppers’ doorsteps at minimal cost. However, this advantage is eroding. The US, under President Donald Trump’s administration, scrapped the $800 de minimis exemption, while the European Union is moving to abolish its €150 waiver. Britain, too, is reviewing its own £135 exemption after complaints from traditional retailers that online giants like Shein and Temu are unfairly undercutting them.
“The brand could also be hit by import taxes after the UK government announced a review of the exemption for packages worth less than £135,” BBC reported. Shein has already responded by raising prices in the US, and similar moves could be on the horizon for UK shoppers if the government tightens the rules. The company itself has flagged these changes, along with potential supply chain delays, currency fluctuations, and rising freight costs, as risks that could impact future sales and profitability.
Despite these headwinds, Shein’s UK operations have continued to expand. The company’s 2024 milestones included not just new offices and pop-up shops, but also a growing workforce: filings show Shein UK employed 91 people as of December 31, 2024, with a notable gender balance—68 women and 23 men, two female directors, and five female senior managers. The business’s local expertise has likely contributed to its ability to tailor offerings and marketing to British consumers, further entrenching its market position.
Shein’s relentless focus on affordability and trend-driven products has made it a favorite among budget-conscious shoppers, particularly as inflation erodes disposable incomes. The retailer’s ability to adapt—expanding its product range, experimenting with physical retail through pop-ups, and leveraging digital marketing—has kept it ahead of the curve, even as it faces mounting scrutiny.
Yet, the company’s rapid growth has also made it a lightning rod for criticism. Alongside concerns over labor standards and environmental impact, Shein’s business model has been accused of contributing to the decline of traditional high street retailers. According to Reuters, British and European policymakers are increasingly focused on leveling the playing field, with reviews of customs exemptions and calls for greater corporate accountability gaining momentum.
Looking ahead, Shein’s path to a successful IPO—and continued dominance in the UK—will depend on its ability to navigate these regulatory, legal, and reputational challenges. The company’s confidential Hong Kong filing signals determination, but the outcome remains uncertain as authorities and advocacy groups keep a watchful eye.
For now, Shein’s soaring UK sales and profits stand as a testament to its disruptive power in the retail sector. Whether it can sustain this momentum in a changing policy landscape—and under the glare of public scrutiny—will be the real test in the months to come.
