Fast fashion giant SHEIN, which runs its operations online, will open its first ever permanent store in Tokyo on Sunday.
The move is part the company’s efforts “to live up to a lofty valuation that’s been shaken by slowing sales growth and concerns about its environmental and social impacts,” Bloomberg reported.
The two-storey showroom will be located in Cat Street, which runs between Harajuku and Shibuya “and is a haven of culture and fashion.”
The 200-square meter venue will feature three changing rooms, a photo booth for shoppers to snap, and will also showcase bags and cosmetics, according to the company.
The venue may also be used for events, SHEIN said.
However, despite the physical retail store, customers will still have to do all their ordering online. Shoppers will have to scan a product’s QR code, and they will be directed to SHEIN’s website or app where they can make purchases and organise delivery, Bloomberg said.
The fashion company has surpassed global retail brands such as H&M and Zara, with a valuation of $100 billion in April, reportedly greater than that of the two combined.
Recently, SHEIN faced allegations against its business practices which involves 18-hour shifts, penalising employees and withholding salaries, according to an investigation by UK broadcaster Channel 4.
SHEIN, which also runs its operations in the UAE, was reported to penalise its employees by cutting two-thirds of their daily wage if they made a mistake on a clothing item.
Additionally, according to a report in US-based magazine The Cut, “in one factory, Channel 4 found that workers receive a base salary of 4,000 yuan per month – roughly $556 – to make 500 pieces of clothing per day and that their first month’s pay is withheld from them; in another factory, workers received the equivalent of four cents per item. Workers in both factories were working up to 18-hour days and were given only one day off a month.”
As per China’s labour laws, the reported working hours and conditions have been violated. SHEIN had not immediately respond to The Cut’s request for comment at the time.
Despite facing turmoil, “SHEIN has told existing investors that it hopes to have an IPO in the US as soon as 2024,” people familiar with the matter told Bloomberg.
Follow us on
