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.
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