Fast-Fashion Brand Shein Opening U.S. Distribution Centers

China-Based Apparel Company Shein Is Adding Distribution Centers Stateside.

China-based fast-fashion company Shein is the most downloaded shopping app in the United States, so it is no surprise that it is expanding its network of distribution centers in the Midwest, California and the Northeast.

One distribution center in Whitestown, Indiana, is already up and running. It's expected to shave as many as four days off delivery times for the company's orders, Wealth Management reports.

A second distribution center is slated to open in Southern California by spring 2023, with the possibility of a third in the Northeast, the company has said.

What might be surprising is that these are the first distribution locations the company will open stateside. For the decade that the company has sold in the U.S., Shein has shipped orders from overseas, meaning that delivery times are 10 or even 15 days — an eternity compared to the next-day promises of Amazon and its ilk.

Despite its slower delivery times, the private company was estimated to have $10B in revenue in 2020, The New York Times previously reported.

Shein's distribution facility in Indiana measures 659K SF, but the company is planning to add another 320K SF or so and wants to build an additional 550K SF there, according to Inside Indiana Business.

Shein's California facility will be in the Inland Empire city of Cherry Valley. The 1.8M SF facility is being developed by Shopoff Realty Investments and Artemis Real Estate Partners, The Real Deal has reported.

The company's expansion comes as some analysts predict an oncoming shift in consumer preferences that moves away from fast-fashion, which is often associated with questionable labor practices and contributing to the incredible amount of textiles heading to landfills.

“All of these fast fashion brands are basically going to face a reckoning in the next even 10 years,” an analyst told Wealth Management.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Site Centers To Stop Trading As It Winds Up Operations

Newmark: $179B In Low-Rate Real Estate Loans Face Refinancing Risk

DFW Industrial Thrives As Tenants Seek Quality, Flexibility And Power

Brookfield Veteran Departs To Become Pretium's Global Real Estate Lead

Lenders Accuse Nord Group Entities Of Pocketing Rents, Faking Insurance As Multifamily Empire Crumbles

Willy Walker On The Risks And Sacrifices Behind Walker & Dunlop's Growth

Howard Hughes Texas President Jim Carman To Step Down

Apartment Rent Declines Slowing, Demand Rising As Renter Pool Expands

Prologis Warns Higher Borrowing Costs Will Slow Industrial Deals, Development

After Rig Collapse, Citadel HQ Project Resumes With Safety Protocol Update

Swedish Real Estate Giant To Buy Stockbridge For Up To $550M

Space Race: How The Private Sector's Orbital Aspirations Are Driving CRE On Earth