Shein has overtaken Boohoo for the first time in Britain’s retail market, as the Chinese fast fashion giant recorded revenues of £1.55bn over the past year.
The fashion brand, known for its low-priced clothes shipped directly to customers from China, revealed a 38pc jump in its UK revenues in the 12 months to December 2023.
In accounts for Shein Distribution UK, its British subsidiary, the company said revenues were up at £1.55bn for 2023, compared to £1.12bn for the previous 16-month period.
The numbers represent a milestone moment for the UK’s fashion industry as Shein’s annual sales have overtaken Boohoo for the first time. They are also closing in on Asos.
In Boohoo’s latest full-year results, the company said its UK revenues were at £922m, down 16pc on the prior year, while Asos said its full-year domestic sales hit £1.55bn.
Kate Calvert, an analyst at Investec, said: “Growth in Shein has definitely caused issues for, and sucked sales away, from online retailers such as Boohoo and Asos.”
The boom in sales at Shein comes as the company lays the groundwork for a blockbuster £50bn listing in London, with meetings with investors expected to take place in the coming weeks.
The preparations have sparked a backlash in London, with the bosses of some of Britain’s biggest retailers criticising alleged tax practices by Shein.
The complaints centre around Shein shipping directly to customers from China, with rivals claiming that this unfairly allows Shein to pay much lower customs duty.
Shein has argued that it keeps prices affordable through its “on-demand business model and flexible supply chain”.
A spokesman said earlier this year: “We pass this advantage to our customers and this has driven our growth.”
Shein revealed its pre-tax profits jumped to £24m last year in its latest set of accounts, compared to £12m in the prior period.
It said its tax bill rose to £5.7m, up from £2.34m a year earlier. Asos received a tax credit of £73m for the last financial year, while Boohoo paid £19m in tax.