Shein’s UK business raked in more than £1bn in sales last year as GlobalData forecasts it will become one of the top 10 apparel firm’s in the country by market share in 2023.
The fast fashion retail giant posted a pre-tax profit of £12.2m in the 16 months to 31 December 2022, as revenue topped £1.1bn, according to documents filed on Companies House.
GlobalData apparel analyst Louise Deglise-Favre said Shein was the 14th largest clothing retailer in the UK in 2022 with a market share of 1.7%, and this is set to grow further in the current year.
“GlobalData expects its market share to have increased significantly in 2023 to 2.2%, placing it in the top ten for the first time, as awareness has grown, and cash-strapped consumers have sought cheaper clothing,” she said.
Shein marked several significant milestones during the period, including its collaboration with music artists Stefflon Don and three pop-up shops in London.
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The Singapore-headquartered retailer set up its British division in September 2021, with trading commencing the following month.
Its UK business had 14 employees during the period, the majority of whom worked in marketing.
Shein plans to grow its UK presence earlier this year, announcing that it would open 30 new pop-ups across the region.
Sky News reported last week that Shein was in talks to acquire Missguided from Frasers Group, less than 18 months after Mike Ashley’s retail empire swooped to buy it out of administration.
Deglise-Favre said that Shein’s potential acquisition of Missguided would “allow it to become even more dominant in the UK market in the future”.
“Missguided has lost significant market share in recent years due to increased competition from newer, more agile fast fashion players, leading to it being rescued from administration by Frasers Group in June 2022,” she said.
“However, the brand still has high consumer awareness in the UK, which Shein could leverage to its advantage, especially if it incorporates the brand into its burgeoning marketplace or starts selling its own products under the Missguided name.
“An acquisition of Missguided could also enhance Shein’s distribution capabilities in the UK to provide faster and more efficient delivery for shoppers,” Deglise-Favre added.
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