Shein closes in on Asos amid record UK sales

(Sharecast News) - Shein's UK business reported record sales for 2024, it emerged on Friday, with revenue rising 32.3% to £2.05bn, according to filings at Companies House. Pre-tax profit jumped 56.6% to £38.25m, marking the first time the fast-fashion retailer's UK operation has surpassed the £2bn sales mark.

The UK was now Shein's third-largest market after the United States and Germany.

Singapore-headquartered Shein, founded and with the bulk of its operations still in China, expanded its UK presence during the year, opening offices in King's Cross and Manchester, launching a pop-up shop in Liverpool, and running a Christmas bus tour across 12 cities.

Staff numbers almost trebled to 91, mainly in marketing roles.

Shein had overtaken Boohoo in UK sales and was closing in on Asos, helped by low prices, frequent promotions, and expansion into categories including toys, homeware, and beauty.

The results came as Shein pursued a long-delayed public listing.

After failing to secure regulatory approval for a London IPO, amid disagreements over supply chain risk disclosures related to China's Xinjiang region, the group had reportedly filed to float in Hong Kong, a move seen as an attempt to pressure UK regulators.

Shein had faced criticism from politicians and rights groups over alleged labour abuses in Xinjiang, which it denies, stating it has a "zero-tolerance policy" on forced labour.

The company's growth had also been aided by the UK's "de minimis" import rule, allowing parcels worth under £135 to enter tariff-free, enabling Shein to ship goods directly from factories in China at low cost, although most parcels still attract VAT.

However, chancellor Rachel Reeves had pledged to review the exemption following complaints from domestic retailers.

Similar low-value import waivers had already been scrapped in the US and are being phased out in the EU.

Shein had warned that higher import charges, inflation, and cost-of-living pressures could weigh on future sales.

Reporting by Josh White for Sharecast.com.