Shein invests 500 million euros in Poland to expand logistics hub

Shein is expanding its logistics base in Europe. As the Chinese ultra-fast fashion giant announced on Wednesday, it is investing 500 million euros (562 million dollars) this year to expand its European logistics hub in Wrocław, Poland. This brings the company's total investment volume in Poland since 2022 to one billion euros.

One million square metres and 6,500 robots

Following the expansion, Shein states the hub will encompass around one million square metres of warehouse space, representing an increase of 25 percent. This is equivalent to approximately 140 football pitches. The company is collaborating with logistics real estate developer Logicor on the project. Shein deploys more than 6,500 autonomous robots for sorting, inventory replenishment and order picking. The increased use of automation technology aims to boost processing capacity and efficiency in order fulfilment. The goal is to store more stock closer to European customers. According to the company, deliveries from the hub are already possible within 48 hours in several markets.

The workforce at the site is expected to grow to more than 10,000 employees by the end of 2026. These staff members work across logistics, supply chain management, technology and warehouse operations. This would make Shein one of the largest employers in the Lower Silesia region. According to its own figures, the company in Wrocław also supports more than 230 Polish small and medium-sized enterprises in sectors such as transport, packaging and professional services. The marketplace also plays a significant role. Since the launch of the integrated Polish marketplace in April 2025, Shein reports that over 500 Polish brands and retailers have joined the platform. The expanded logistics capacities are generally intended to make it easier for more European brands and retailers to reach customers in the region.

Response to new customs regulations

The investment comes during a period of regulatory upheaval. Since November 1, a new handling fee for imports of small parcels from non-European Union (EU) countries has been in force in the EU, which Brussels is using to curb the flood of low-cost shipments. Previously, the customs duty exemption limit of 150 euros for low-value consignments had already been abolished. For platforms such as Shein, Temu or AliExpress, the model of shipping individual parcels directly from Asia is therefore losing its appeal. Goods that are already cleared through customs and stored within the EU bypass these additional costs.

As FashionUnited reported, Shein only launched a collaborative logistics service for marketplace sellers in Spain in mid-October. It works with General Logistics Systems (GLS), Federal Express (FedEx) and Correios de Portugal (CTT). The service covers routes to Germany, France, Italy and Portugal. Spain is the first European country to offer the service. Alongside the expansion in Wrocław, it is becoming clear that Shein is strategically strengthening its European infrastructure and marketplace business.

Operating profit halved, share price under pressure

At the same time, the company is under economic pressure. In its first interim figures since its initial public offering in Hong Kong on September 1, Shein reported a decline in operating profit of around 53 percent for the first half of the year. The company cited geopolitical complexity, shifting trade policies and higher inflation facing consumers as the primary reasons. Shein founder Chris Xu emphasised that orders and revenues had nevertheless increased. Following the announcement, the share price temporarily fell by around 12 percent, reaching a low since its stock market debut.

For the second half of the year, Shein anticipates continued pressure from tariffs and fluctuating freight costs. In the fourth quarter, the company expects an increase in orders, driven in part by Christmas trading and Black Friday.