Dive Brief:
- Fast fashion giant Shein reported financial information for its U.K. division last week, showing it earned 1.12 billion pounds in revenue, or about $1.38 billion at current exchange rates, from September 2021 to December 2022, according to filings with the Companies House.
- Shein, which has previously declined to disclose its financial information, is forecast to become one of the top 10 U.K. apparel retailers this year, according to an industry analyst from GlobalData.
- The news shows that the Singapore-based company, which was founded in China, is deepening its presence in the U.K. while making similar moves in the U.S., including its recent deal with Forever 21’s operator.
Dive Insight:
Despite legal troubles with some of its rivals and congressional investigations over its labor practices this year, “Shein has quickly grown in popularity among Gen Z shoppers in the UK,” Louise Deglise-Favre, apparel analyst for GlobalData, said in emailed commentary.
Shein’s 2022 financial figures place it as the 14th largest apparel retailer in the U.K. in 2022, per GlobalData, with a market share of 1.7%. The firm anticipates Shein to boost its market share to 2.2% in the region for 2023.
Multiple outlets have reported the rumor that Shein may be in talks to acquire U.K.-based fast fashion brand Missguided, which is owned by the Frasers Group. Were this to happen, Deglise-Favre said Shein could become even more dominant in the U.K. market.
Earlier this month, Shein opened a pop-up store on Oxford Street for London Fashion Week. The pop-up strategy was a way for it to test a physical retail location before committing to a permanent location, Deglise-Favre said.
Shein’s recent deal with SPARC Group, operator of Forever 21, will allow it to dabble in physical retail in the United States as well.
That agreement, which was announced last month, allows the fast fashion rivals to distribute each other’s products through both companies’ digital and retail channels. Shein will hold a one-third interest in Sparc Group, a joint venture between Forever 21 parent companies Authentic Brands Group and Simon Property Group, and Sparc will become a minority shareholder in Shein.
A Shein spokesperson didn’t respond to Fashion Dive’s request for comment ahead of press time.
