Shein is coming to Europe EPA/MARK R. CRISTINO

Trade World

Shein pours €500 million into Polish logistics hub amid EU regulatory scrutiny

2 minutes read

The expansion aims to solidify the retailer's fulfilment capabilities across the European single market, promising delivery times as short as 48 hours in select jurisdictions.

Singapore-headquartered fast-fashion giant Shein has announced a €500 million capital injection for 2026 to expand its European logistics hub near Wrocław, Poland, bringing the company’s cumulative infrastructure investment in the country to €1 billion since 2022.

The expansion aims to solidify the retailer’s fulfilment capabilities across the European single market, promising delivery times as short as 48 hours in select jurisdictions.

The scale-up will increase the warehouse footprint by 25 per cent to approximately one million square metres, developed in partnership with logistics real estate firm Logicor.

To manage the vast flow of inventory, the facility is deploying more than 6,500 autonomous robots tasked with inventory replenishment, order picking, and sorting.

The company projects that the expanded hub will support a workforce of 10,000 by the end of the year, positioning it as one of the largest employers in the Lower Silesia region.

It also stressed there will be an ecosystem of more than 230 local Polish SMEs providing goods and services to SHEIN’s operations in Wrocław.

Leonard Lin, SHEIN’s Global Head of Public Affairs and President, EMEA, said “Poland has become a cornerstone of our European operations, and this latest investment reflects our confidence in the country, its workforce and its business environment.”

With the heavy investment in advanced automation, some fear that the large-scale deployment of robotics would cap long-term headcount growth.

The automation is intended to improve efficiency and reduce physically demanding manual tasks, rather than replace human labour.

The vast majority of the 10,000 projected positions will be full-time, non-seasonal roles, though there also will be a reliance on third-party employment agencies to source operational warehouse staff and manage rapid facility growth, as is common in the sector.

The Wrocław hub serves as the central staging ground for Shein’s European market penetration, though the actual manufacturing base for the stocked goods remains largely overseas.

“Shein has not published a breakdown of how much of its inventory is manufactured within the European Union.”

The Polish facility operates strictly as a logistics and fulfilment centre, receiving stock from China and other global locations, alongside goods supplied by vendors utilising the Shein Marketplace.

The integration of local European sellers into the platform represents a core pillar of the company’s regional strategy. Since launching an integrated Polish marketplace in April 2025, Shein reports that more than 500 local brands and retailers have joined the platform.

However, this rapid integration of third-party vendors occurs against a backdrop of intense regulatory scrutiny from Brussels regarding consumer safety and environmental standards, and Brussels has remained critical towards the company.

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