Surpassing Boohoo in Britain’s retail market for the first time, Shein reported annual revenues of £1.55 billion over the past year. Known for its low-cost clothing shipped directly from China, the Chinese fast fashion label recorded a 38 per cent increase in UK sales in the 12 months leading up to Dec 2023.

According to the accounts for Shein Distribution UK, the brand's British subsidiary, the retailer’s revenues rose to £1.55 billion during 2023, compared to £1.12 billion over the previous 16-month period. This marks a significant moment for the UK fashion industry, as Shein's annual sales have now overtaken Boohoo, and the company is rapidly closing in on Asos.

In Boohoo's most recent full-year report, the company posted UK revenues of £922 million, reflecting a 16 per cent decline from the previous year. Meanwhile, Asos reported domestic sales of £1.55 billion for the same period.

Kate Calvert, Analyst, Investec notes, driving away sales from competitors like Boohoo and Asos, Shein's growth has undoubtedly impacted other online retailers. However, the fast fashion giant's rapid growth has sparked criticism from some of Britain’s leading retailers, who have raised concerns about Shein’s tax practices.

The controversy revolves around Shein shipping items directly to customers from China, which rivals argue allows the company to pay significantly lower customs duties. However, defending its practices, Shein cites its ‘on-demand business model and flexible supply chain’ as the reason for its affordable prices, which in turn has fueled its growth.

Shein's pre-tax profit also increased to £24 million during the period, doubling from £12 million in the previous period, show its latest accounts. The company’s tax bill rose to £5.7 million from £2.34 million the year prior. In comparison, Asos received a £73 million tax credit for its last financial year, while Boohoo paid £19 million in taxes.