Shein Overtakes Asos in UK Market Amid Tax Debate
Shein has surpassed Asos in UK sales, reaching £2.58bn, while facing government plans to eliminate low-value import tax exemptions by 2028.
Fast-fashion retailer Shein has overtaken its British competitor Asos in the United Kingdom, reporting a 26% increase in UK sales to £2.58bn. The company's UK division saw pre-tax profits rise 18% to £45.2m, a growth driven by pop-up events in major cities and marketing partnerships with music festivals.
This expansion relies heavily on the de minimis rule, which exempts goods valued at £135 or less from customs duties. Former Chancellor Rachel Reeves announced plans to eliminate this exemption by 2028. However, retail leaders are calling for faster action to prevent the dumping of Chinese goods, following similar regulatory shifts in the United States and European Union to scrap low-value import exemptions.
Despite its success in Britain, Shein's global quarterly profits fell 67% to £173m. The company attributed this decline to rising oil prices and increased freight rates linked to the war in Iran.
