Shein Opening First Store in South Africa: A Pop-Up Showcase at Mall of Africa

Chinese retail giant Shein is set to open its first pop-up store in South Africa at the Mall of Africa. While no products will be sold on-site, visitors can explore Shein’s latest fashion and lifestyle offerings and order items online at a discount. In an exciting move, Chinese clothing retail giant Shein is opening its first pop-up store in South Africa, situated in the bustling Mall of Africa in Midrand, Gauteng. The temporary exhibition space, which will operate from August 2 to August 11, 2024, aims to showcase Shein’s latest fashion and lifestyle products, rather than sell them directly.

The store’s operational hours will be from 14:00 to 20:00 on Friday, August 2, followed by daily hours of 09:00 to 21:00 from Saturday, August 3, to Sunday, August 11. While customers cannot make purchases at the store, they will have the opportunity to try on products and place orders online at a discounted rate.

Interestingly, some local retailers have already started selling Shein products in their physical stores. MyBroadband reported seeing a store named Sisters in Fairyland in Port Edward, KwaZulu-Natal, offering a variety of Shein items.

Shein has been accessible to South African shoppers for some time, with fellow Chinese e-commerce platform Temu launching locally only in January 2023. Both platforms have significantly disrupted the South African online shopping landscape, leading to major local retailers accusing Shein and Temu of exploiting tax loopholes to offer lower prices.

According to an anonymous industry expert, logistics partners of Shein and Temu have benefitted from a concession list published by the South African Revenue Service (SARS) 17 years ago. This allowed them to pay a flat 20% tax rate on imported items, whereas local retailers face approximately 45% plus 15% VAT on clothing imports.

SARS commissioner Edward Kieswetter revealed in mid-July 2024 that these loopholes had resulted in fiscal losses of R3.5 billion. He emphasized SARS’ commitment to closing these gaps, stating that the existing rules and processes were outdated, dating back to when online shopping was less prevalent in South Africa.

To address this issue, SARS implemented a new import duty of 45% plus VAT on all textile products starting July 1, 2024. This move aims to level the playing field for local retailers, a change welcomed by industry players like The Foschini Group CEO Anthony Thunström, who noted it would support local production and jobs.

However, this new duty has not been without controversy. South African consumers have expressed their displeasure, with many launching a petition against the tax hike. The petition, titled “Petition for SARS not to increase tax on Temu and Shein orders,” has garnered nearly 21,400 signatures.

Shein’s pop-up store at the Mall of Africa presents a unique opportunity for South African consumers to experience the brand’s offerings firsthand, despite the ongoing debate over import duties and the broader implications for the local retail industry.