Superdry's Dunkerton calls for higher taxes on Shein in the UK

Julian Dunkerton, the CEO of Superdry, has raised concerns about the competitive advantage enjoyed by Shein, a rival fast fashion retailer, due to its ability to avoid import duties on low-value parcels shipped directly to UK customers. Dunkerton argues that this tax loophole undermines UK retailers and deprives the government of potential tax revenue. He advocates for the imposition of import duties, VAT, and possibly an environmental tax on Shein's products to level the playing field. Shein, which has relocated its operations to Singapore, claims its success stems from an efficient supply chain rather than tax exemptions. The UK Treasury has stated that its tax policies aim to balance the interests of consumers and businesses, but Dunkerton believes that the current system disproportionately favors foreign competitors. The scrutiny of Shein's practices has intensified as the company prepares for a potential stock market listing, following criticism of its labor practices and environmental impact. The US and EU are also considering tightening tax regulations for direct-to-consumer businesses like Shein and Temu, reflecting a growing concern over the implications of globalized online retail on local economies. Dunkerton's call for higher taxes on Shein highlights the broader debate about fair competition in the fashion industry and the need for regulatory adjustments to protect domestic businesses.