Shein is evaluating a site for its first UK warehouse as it eyes a listing on the London Stock Exchange.
- The warehouse is intended to be between 300,000 and 400,000 square feet, located within the Midlands’ ‘golden logistics triangle’.
- Shein has been assessing various potential sites in cities such as Derby, Daventry, Coventry, and Castle Donington.
- The decision is contingent on Shein’s stock market debut and ongoing negotiations with a third-party provider.
- Shein seeks to expand globally, although there are no immediate plans for UK warehouse acquisition.
Shein is reportedly assessing the establishment of its first UK warehouse ahead of its anticipated flotation on the London Stock Exchange, a move reflecting the etailer’s strategic intent to bolster its logistics infrastructure in the region. The proposed warehouse is expected to be extensive, covering an area of 300,000 to 400,000 square feet. Located within the Midlands’ ‘golden logistics triangle’, a strategically favoured area for distribution, potential locations have been identified in cities including Derby, Daventry, Coventry, and Castle Donington.
Throughout recent months, Shein representatives have explored numerous prospective facilities, conducting approximately ten site viewings. This exhaustive search illustrates Shein’s commitment to finding an optimal logistics solution that would enhance their UK operations.
The decision regarding the warehouse will depend significantly on the success of Shein’s upcoming debut on the London stock market and ongoing discussions with its current third-party logistics provider, Super Smart Service, which presently handles UK orders from a warehouse in Cannock, Staffordshire. This implies that the logistics strategy is heavily influenced by financial and operational considerations as well as market conditions.
Moreover, Shein’s plans to finalise a decision on the warehouse by the end of the year indicates a well-formulated timeline, with operations intended to commence by the third quarter of the next year. To assist in this endeavour, property agents JLL and Savills have been engaged, lending their expertise to the search and negotiation processes.
The potential flotation on the London Stock Exchange is significant. If the UK Financial Conduct Authority approves its prospectus, Shein, founded in China and based in Singapore, could commence trading by the end of the year. This marks a departure from previous considerations to list in New York, following discussions with former UK Chancellor Jeremy Hunt in February.
Shein achieved a record profit of $2 billion (£1.6 billion) in 2023, underscoring its robust financial performance and solidifying its position in the market. Despite widespread reports of Shein’s interest in a UK warehouse, a company spokesperson has clarified that there are no immediate plans for acquisition, a statement that aligns with the strategic yet cautious approach the company seems to be adopting.
Shein’s exploration of a UK warehouse signifies its strategic expansion tied closely to its stock market ambitions and logistics optimisation.
