The online fashion retailer's massive capital injection will dramatically scale up its logistics center located near Wroclaw, Poland. Operating with advanced automation, the regional site is set to employ over 10,000 personnel and integrate 6,500 autonomous robots by the end of 2026. This localized infrastructure allows the company to offer 48-hour delivery times to buyers in designated regional markets. The strategic pivot follows strict European trade fees that caused the firm's net profit to tumble by 67 percent.
Key points
Expanding local warehouse infrastructure enables the retailer to offer 48-hour delivery s…: Expanding local warehouse infrastructure enables the retailer to offer 48-hour delivery services to targeted regional customers.
European regulatory fees imposed on low-value parcels contributed to a 67 percent drop in…: European regulatory fees imposed on low-value parcels contributed to a 67 percent drop in Shein's net profit.
Low-cost e-commerce platforms including Shein, Temu, and AliExpress are restructuring log…: Low-cost e-commerce platforms including Shein, Temu, and AliExpress are restructuring logistics to navigate aggressive European Union trade rules.
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PARIS, Nov 4 : Online fashion retailer Shein said on Wednesday it would invest €500 million ($562 million) to expand its European logistics hub in Poland as it pursues faster deliveries and greater operational flexibility.
Shein, along with Chinese competitors such as Temu and AliExpress, is adapting to charges imposed in July to curb what the EU says is unfair competition from online retailers.
• The EU initially introduced a €3 fee for parcels worth less than €150, and increased the levy by €2 on November 1
• Shein's sales in Europe dropped sharply in the second quarter, contributing to a 67 per cent net profit fall
• "Through this investment, we are building more efficient, flexible and resilient European operations," said Leonard Lin, Shein's global head of public affairs
• Shein said the major expansion of its plant near Wroclaw, Poland, will take its total workforce to more than 10,000 people and 6,500 autonomous robots by the end of 2026
• Customers in certain markets will receive products stored at the plant within 48 hours
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