Shein to build a 1.8 million-square-foot distribution center in California and offer thousands of jobs

September 17, 2022 8:39 pm

Shein, the Chinese fast fashion clothing chain known for its low pricing and primarily online business model, is planning its expansion in the United States, one of the company’s key markets, by building two more large warehouses in addition to the one in Indiana. Shein will also hire hundreds more staff in the country, according to the Wall Street Journal, quoting George Chiao, president of Shein’s U.S. operations.

The company previously had one U.S. distribution center in Whitestown, Indiana, which was open in April this year. The Whitestown center is increasing its capacity from 1 million square feet currently to 1.5 million square feet.

Shein’s second distribution center will be 1.8 million square feet, and to be opened in Southern California by the first quarter of 2023. It’s third distribution center will be located in the Northeast region, according to Chiao. Shein’s Indiana and California distribution centers combined would employ 3,000 people by 2025, says Chiao.

The additional warehouses will greatly improve the fulfillment time of Shein orders. Currently, it takes 10-15 days for Shein customers to receive their orders, according to the company’s shipping policy. In reality, it takes seven to eight days on average for Shein packages to be delivered via standard shipping, according to WSJ quoting Shein.

The 14-years old fast fashion brand is proving itself to be a challenger to Zara, the Spanish clothing and part of Inditex, the world’s largest fashion group.

Just like Zara, which launched Zara Atelier, a new label featuring craftsmanship and design in limited quantity, Shein launched a chic brand called MOTF last year, which is slightly more high-end than Shein’s normal selections and has products such as $135 silk dresses made of “top-grade 6A silk”, according to Shein’s official website.