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

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.