Fashion giant could fuel City’s revival with London’s biggest ever stock market listing
FAST fashion giant Shein could spark a revival in the City with London’s biggest ever listing after clashing with regulators in New York.
Bosses at the Chinese company – valued at £32 billion ($50 billion) – are considering the Square Mile after intense scrutiny from regulators in the US, it has been reported.
A move would eclipse the £10 billion London record set by Russian oil company Rosneft in 2005.
It would mark a major reversal in the worrying trend of companies rejecting the city in favor of New York’s higher valuations.
Chancellor Jeremy Hunt has held talks with Shein chairman Donald Tang about coming to London, which raised less than £1 billion in listings last year.
Shein makes its cheap clothes in about 6,000 factories and is sometimes called ‘Asos or Boohoo on steroids’ because it produces more clothes at lower prices.
The company made £1 billion in UK turnover in two years from selling £2 T-shirts and £4 dresses, the accounts show.
The company uses AI to combine social media with fashion trends before releasing small batches, amounting to an astonishing 10,000 new styles per day in the app.
Shoppers take longer to receive goods from factories in China, but young buyers often place large orders, known on social media as “Shein-hauls.”
Shein, which is headquartered in Singapore, is on the rise in Britain after acquiring fast fashion retailer Missguided, poaching senior Boohoo staff and setting up an office for British workers.
The US, meanwhile, is demanding more transparency about its ownership and financing structure.
There are also claims that it sources cotton from forced labor camps.
Shein insists this is not the case.
Danni Hewson, analyst at AJ Bell, said: “A public listing will highlight the supply chain and ethical and environmental issues surrounding fast fashion.
“These will not be of interest to all investors.
“Some may simply see Shein as another opportunity to buy shares in a fast-growing name that is taking market share from competitors left, right and centre.”
BANKERS are salivating over a London stock market listing by Shein, but if US regulators are concerned, shouldn’t UK investors be too?
Yes, the team is fast-growing and technology-oriented – qualities that make hearts beat faster – but the city’s reputation depends on its high standards.
The recent string of big bets on Duff firms shows that funds are driven by fear of missing out rather than best practice.
Investors should also apply a healthy dose of British cynicism to Shein and its record of poor transparency.
M&S pay rise for employees
MARKS & SPENCER is spending £89 million on increasing wages for its employees as retailers battle to recruit and retain staff.
The minimum wage outside London will rise to £12 an hour, with workers in the capital earning £13.15.
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This brings M&S into line with the real living wage.
It means around 40,000 staff will get a pay rise, with full-time employees earning £180 more per month.
Paternity leave will be increased to six weeks and maternity and adoption leave will be doubled to six months.
Boss Stuart Machin said: “Our vision is to be the most trusted retailer – and that starts with being the most trusted employer.”
Aldi and Sainsbury’s have already increased wages.
The Bank of England has warned of a ‘wage spiral’ fueling inflation.
However, companies have argued that they are looking after their staff, who have faced skyrocketing bills due to the cost of living.
Women on board
WOMEN now hold more than two in five seats on the boards of Britain’s largest listed companies, reaching a level of 40 percent three years ahead of target.
The government’s FTSE Women Leaders report shows that the number of women on boards in the FTSE 350 reached a record 42 percent in January.
But there are still only ten female CEOs in the FTSE 100, while nine companies in the FTSE 350 are all-male.
‘No Abrdn split’
The boss of British fund manager Abrdn yesterday ruled out splitting the company, despite falling profits and an exodus of clients.
It reported that customers raised £13.9 billion in cash last year.
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As a result, profits fell 5 percent to £249 million.
The company is cutting 500 jobs, but boss Stephen Bird has pocketed a bonus that will take his total pay to £1.1 million despite poor performance.
‘Scrap budgets’
The Chancellor should scrap all budget statements and give businesses more certainty, the boss of Britain’s manufacturing trade body has said.
Make UK’s Stephen Phipson called for a tax and spending policy for the entire duration of parliament.
Two-thirds of organization members had reported that frequent policy changes made it more difficult to create business plans.
Cheer for booze
DRINKERS have returned to booze this month after abstaining during Dry January, supermarket data shows.
According to figures from Kantar, alcohol sales rose 18 percent in February, with shoppers buying 28 percent more wine and 16 percent more beer.
The market research group confirmed that retail price inflation has fallen to 5.3 percent – the lowest level since March 2022.
The figures also show that Lidl is still the fastest growing supermarket, as more and more consumers switch to discount stores.
Last year, more than 140,000 small businesses lost their bank accounts.
The Treasury committee heard that 2.7 percent of small businesses had been debanked.
Many received little or no notice, said chairman Harriett Baldwin.
Curries are not hot
CURRYS has rejected a spicy £742 million takeover approach from Elliott Investors.
The electronics retailer revealed that the US company, which owns Waterstones, came back with an offer of 67p per share.
The initial 62p approach was rejected and analysts agreed it was far too cheap for a company that generates £9.5 billion in sales.
Currys has rejected the new offer because it ‘significantly undervalues’ the company.
The shares traded at 68p after a leak about the higher offer, before falling to 66.50p.