Shein has scrapped plans to open a UK warehouse, further clouding its prospects for a blockbuster £50bn listing on the London Stock Exchange.
The fast fashion giant had been scouting large-scale warehouse sites in the East Midlands, including Derby, Daventry, Coventry, and Castle Donington, but has now confirmed it has “no plans” to proceed.
The move comes amid mounting regulatory pressures in the UK, US, and EU, as well as intensified scrutiny over Shein’s supply chain transparency and ESG credentials.
Shein’s direct-to-consumer model relies on shipping small tax-exempt packages from China, taking advantage of the US de minimis exemption, which allows packages under $800 (£645) to enter duty-free. However, former US President Donald Trump recently announced plans to close this loophole, a decision that—if implemented—could significantly impact Shein’s operations.
Meanwhile, the EU is reportedly planning similar tax reforms, further threatening Shein’s ability to circumvent import duties.
Shein’s London IPO ambitions have also been overshadowed by allegations of forced labour. Last week, campaign group Stop Uyghur Genocide launched a judicial review process aimed at blocking the listing, citing alleged links to forced labour in China—claims Shein strongly denies, stating it “strictly prohibits forced labour in its supply chain globally.”
Additionally, UK MPs have stepped up their scrutiny of Shein, calling company executives before the Business and Trade Committee last month to answer questions about their sourcing practices. When officials refused to confirm whether Shein sources cotton from China, MPs accused the company of “wilful ignorance.”
Shein had originally planned to list on the London Stock Exchange in the first half of this year, in what would have been one of the UK’s biggest IPOs. However, the company is now reportedly considering cutting its valuation to £40bn, down from an earlier £50bn estimate.
Meanwhile, property industry insiders suggest Shein’s ESG concerns are deterring UK warehouse landlords, further complicating its expansion plans.
Despite the challenges, a Shein spokesperson played down the warehouse U-turn, stating: “To support the growth of the business, Shein constantly explores warehousing locations worldwide. However, as Shein has no immediate need for a warehouse in the UK, there are no plans to have one.”
As regulatory, ethical, and operational pressures mount, Shein’s ability to secure a London stock market debut and expand its UK footprint remains in serious doubt.