Fast-fashion retailer Shein increased its United Kingdom sales by 26 percent last year to reach £2.58 billion, surpassing British rival Asos. Newly published accounts filed at Companies House show pre-tax profits at the UK division climbed to £45.2m as the company expanded its local marketing footprint and faced rising regulatory scrutiny over low-value imports.
Shein Overtakes Asos With £2.58bn UK Revenue and £45.2m Profit
Online fast-fashion giant Shein increased sales in the UK by just over a quarter last year, officially overtaking its domestic competitor Asos. Pre-tax profits at the UK division rose 18 percent to £45.2m, compared with £38.3m the previous year.
The company paid £11.2m in current tax, understood to be primarily corporation tax, up from £9.6m a year earlier. The number of people employed by the group in the United Kingdom rose from 91 to 113, with staff primarily working in sales and marketing. Pay packages for the UK arm’s two directors increased from £135,000 to £242,000, and the firm did not issue a dividend.
Festival Partnerships and Oxford Street Pop-Ups Fuel British Market Expansion
Shein attributed its rising sales figures to an aggressive local marketing push. The retailer pointed to official partnerships with the Wireless and Creamfields music festivals, alongside a high-profile pop-up shop on London’s Oxford Street and Christmas gift events held across Edinburgh, Manchester, Liverpool, and London.
Operating expenses for the UK arm, covering administrative and distribution costs, more than doubled to £27m. Founded in China by entrepreneur Chris Xu, Shein operates most of its manufacturing and logistics from its origin country while selling entirely overseas. The company moved its corporate headquarters to Singapore at the start of 2022 and has increasingly diversified its production footprint by sourcing goods from factories in Turkey and Brazil.
UK Considers Ending Duty-Free Exemptions for Low-Value Parcels
Shein’s dominant business model relies on shipping low-cost garments directly from factories to individual buyers’ homes. Each parcel is kept low enough in value to bypass import tariffs, exploiting the UK’s de minimis
rule, which allows overseas sellers to send goods valued at £135 or less direct to shoppers without paying customs duty.
The strong financial figures are likely to increase pressure on the government to accelerate changes to the threshold. While former Chancellor Rachel Reeves stated that the UK would eliminate the exemption by 2028, major traditional retailers—including Sainsbury’s, Currys, and AO World—have argued that the policy grants foreign e-commerce competitors a structural advantage and urged officials to act sooner.
Shein Debuts on Hong Kong Stock Exchange at £19.6bn Valuation
Xu Yangtian warned that the trading environment remain uncertain in the second half of 2026,
according to filings. Shein maintained that it has tightened supplier guidelines. The company enforces these policies through routine audits, designating any verified child or forced labor violation as grounds for immediate contract termination.