Shein, the Chinese fashion retailer, plans to stock more of its apparel in US warehouses to speed up shipping times to shoppers, Reuters has reported, citing data from global trade analysis firm ImportGenius.
The move would be just the latest from the fast-fashion e-commerce platform as it builds a global presence ahead of a possible IPO in the US.
While its apparel is competitively priced, shipping times from China put it at a disadvantage to other bargain retailers, Reuters said. It currently has one warehouse in Whitestown, Indiana, which it plans to expand, and lacks any physical stores in the US. A new warehouse is expected to open within months in Cherry Valley, California.
The company is also reported to be negotiating to buy the UK’s Missguided clothing brand from Frasers Group PLC (LSE:FRAS).
“The potential deal draws attention to Shein’s global growth ambitions, already operating in over 150 countries as it looks to expand its UK market footprint,” commented Victoria Scholar, head of investment at interactive investor.
“Last year the company was worth around $100 billion and was reportedly the most Googled clothing brand in 2022. It has harnessed a highly successful online strategy, using influencers on TikTok and other social media platforms to spur customer demand.”
Contact the author at stephen.gunnion@proactiveinvestors.com