Shein’s UK sales rise by a third creating a huge boost to profits

Shein’s UK sales soared by a third last year creating a huge profit boost for the Chinese fast-fashion giant.

The brand’s sales to UK shoppers hit £2bn, pushing its profits up by 57% compared to 2023, its full year accounts for 2024 show.

However, the company said it recognised “higher inflation and increased cost of living may affect customer purchasing habits” going forward.

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.

Shein has already put prices up in the US, after President Donald Trump scrapped a tax break on low-value packages.

The “de minimis” exemption had allowed goods valued at $800 (£590) or less to enter the US without paying any tariffs.

These rules in the UK and US had meant the likes of Shein and its rival Temu could keep prices low for shoppers but some retailers argued they were undercutting them and risked putting High Street brands out of business.

Founded in China but now headquartered in Singapore, Shein focuses on keeping prices low, using promotions and rewards to encourage shoppers to keep buying.

Famous for fast fashion, the brand has branched out into selling a wide range of other products from toys and games to kitchenware.

In June last year, Shein filed initial paperwork taking it a step closer to listing on the London Stock Exchange, the BBC understands.

It has faced criticism over working conditions at its Chinese factories and the environmental impact of its business model.

“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,” said Peter Frankental, economic affairs programme director at Amnesty International UK.

“If the UK believes that labour standards matter, then regulations need to be in place to hold companies such as Shein accountable.”

New filings for Shein Distribution UK Ltd, the retailer’s UK operation, show sales grew by 32.3% to £2.05bn in 2024.

Meanwhile, it also reported a pre-tax profit of £38.3m for the year, up from £24.4m in 2023.

It said “significant milestones” from 2024 included opening two offices in Kings Cross and Manchester, the launch of a pop-up shop in Liverpool and a Christmas bus tour across 12 cities in the UK.

The document also reveals Shein UK has 91 employees – 68 women and 23 men – who were primarily providing expertise on the UK market.

The company had two female directors with five female senior managers at 31 December 2024.