Shein Is Opening a 2M SF Distribution Center in Southern California

Calling L.A. influencers: your Shein dresses are now coming from a warehouse near you.

The fast fashion retailer is opening a 1.8 million-square-foot distribution center in the Inland Empire city of Cherry Valley next year, according to online job postings from Shein reviewed by TRD.

Shein’s president of U.S. operations, George Chiao, told the Wall Street Journal on Thursday the company was opening a facility of that size in Southern California, but did not disclose where.

The firm, headquartered in the City of Industry and owned by a Nanjing-based technology company, declined to comment to TRD.

The only development of its kind set to rise in the 8,000-person town of Cherry Valley is a joint project between Shopoff Realty Investments and Artemis Real Estate Partners. Neither Shopoff nor Artemis responded to requests for comment.

On the corner of the I-10 and Cherry Valley Boulevard, the firms are building two warehouse buildings — one 811,000 square feet and the other 1 million square feet. Together, the property will have 300 dock doors and parking for more than 500 trailers. Construction on the project started in June of last year.

The new facility will be one of three new distribution centers the company is opening across the U.S. over the next few years — an announcement made just a few months after Shein was said to be raising $1 billion from investors at a valuation of $100 billion. One will be an expansion of its facility in Whitestown, Indiana, and the other is being planned in the Northeast.

Shein’s expansions come as other companies, including Amazon, have begun to reevaluate their portfolios and pulled away from the industrial market. Others, like Shein, still see the benefit in adding more space, as more people continue to shop online. About 14 percent of all retail sales occurred online in the second quarter, up about 1 percent year-over-year.

By expanding its distribution capabilities, Shein is hoping to fulfill all deliveries in three to four days, Chiao told WSJ. Right now, Shein shipping can take up to three weeks, according to its website.

The company also bagged the building before construction finished — yet another example of firms taking any available space before it comes to market. Across the Inland Empire, industrial space is virtually non-existent, leaving developers racing to scoop up land and complete projects.