Shein has surpassed British competitor Asos in the UK market, following a 26% increase in local sales that brought its annual revenue to £2.58 billion. According to recent filings at Companies House, the retailer’s expansion has been bolstered by high-profile marketing campaigns, including appearances at the Wireless and Creamfields music festivals, a pop-up location on Oxford Street in London, and holiday events across Edinburgh, Manchester, and Liverpool. Shein, the online fast-fashion retailer founded in China, increased sales in the UK by just over a quarter last year, overtaking its British rival Asos.
The company, which recently completed a global listing on the Hong Kong stock exchange at a valuation of approximately $26 billion (£19.6 billion), saw its pre-tax profits climb by 18% to reach £45.2 million. The firm’s UK workforce also expanded to 113 employees, up from 91 the previous year, with staff primarily focused on sales and marketing roles. Additionally, the company reported a current tax payment of £11.2 million, an increase from the £9.6 million paid the year prior. Mostly in sales and marketing, rose to 113 from 91 a year before, pre-tax profits rose 18% to £45.2m even as the number of people employed by the group in the UK.
For comparison, Asos generated £2.47 billion in sales for the year ending August 31, 2025, though this figure encompasses international revenue alongside its domestic performance. Despite this growth, Shein’s global quarterly profits recently fell 67% to £173 million, a decline the company attributed to rising freight costs and oil prices associated with the conflict in Iran. Unlike Shein UK’s comparable statistic, asos’s sales were £2.47bn in the year to 31 August 2025 – although this figure includes revenues outside the UK.
The retailer’s strong performance has placed renewed pressure on the UK government to revise the current tax exemption framework. Critics and retail leaders are calling for earlier action on the “de minimis” rule, which currently allows overseas businesses to ship goods valued at £135 or less into the UK without paying customs duties. While the former chancellor, Rachel Reeves, indicated plans to phase out this relief by 2028, industry executives are pushing for a more immediate intervention. Shein’s strong trading figures are likely to increase pressure on the government to bring forward action to change the “de minimis” rule that has underpinned the rise of the fast-growing online specialists Shein and Temu.
International concerns regarding this duty-free model have gained momentum following the US decision to remove its own de minimis exception for Chinese-manufactured goods last year. Similarly, the European Union has begun transitioning away from such exemptions, replacing a €150 threshold with a mandatory €3 customs fee as of July.
Shein, which moved its headquarters to Singapore in early 2022, continues to operate primarily by shipping orders directly from factories to consumer homes. While the business has previously considered a major listing in London with a projected £50 billion valuation, regulatory concerns and shifting global market conditions resulted in a more modest IPO outcome in Hong Kong this past month.
Regarding supply chain ethics, the retailer has faced scrutiny over labor practices. In response, the company states it has implemented stricter supplier policies enforced through regular audits, noting that any verified instances of child or forced labor are grounds for immediate contract termination. The firm has also begun diversifying its manufacturing base, establishing production partnerships in countries such as Turkey and Brazil.
