Shein plans U.S. expansion
Global online fashion, beauty and lifestyle retailer Shein is reportedly planning to open two new distribution centers.
Shein will open a center in California in 2023, followed by a third in the Northeast at an unspecified date, adding to the one it already has in Indiana, according to The Wall Street Journal (WSJ).
The new facilities are also expected to lead to a multiyear hiring spree in the U.S., with several thousand employees expected to join the team by 2025. But ultimately, the facilities will shorten shipping time for its customers. Currently, the company has been shipping its merchandise overseas by air, as well as via ocean freight leading to long wait time.
On Thursday, Shein also announced the results of a study revealing that its current U.S. facility, located in Indiana, will generate $175 million per year to the local Whitestown, Indianapolis-area economy, once fully operational, and will include the creation of more than 1,000 jobs by the end of 2022 and more than 1,400 by the end of 2025.
Shein's anticipated expansion of the Indiana facility would increase the total employment impact in the region to approximately 2,300 jobs. In addition, this growth would contribute to an estimated $230 million of economic value add per year by 2025.
The facility in Whitestown will serve as Shein's main distribution hub in the Midwest, serving U.S. customers and reducing the need for international shipping and handling. The facility is ideally located for Shein's distribution in the U.S., and a great addition to the company's growing U.S. presence, which includes Los Angeles and Washington, D.C. area offices.
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