NRF Declines SHEIN’s Membership During Retailer’s US IPO Pursuit

SHEIN has made multiple attempts to join the National Retail Federation (NRF) but has been consistently denied membership, according to CNBC.

Meanwhile, the fast-fashion giant has been putting its efforts into entering the U.S. IPO market, aiming to gain acceptance within the wider retail industry.

People close to the matter anonymously said the Chinese-founded company, which filed to go public in the U.S. in November 2023, has made several unsuccessful attempts to join the premier trade association of the retail industry.

Becoming a member of the NRF may not hugely impact the operations of most companies. However, the NRF serves as the retail industry’s primary lobbying force in Washington, D.C., and offers entry to NRF events, market trend research, and other valuable advantages.

SHEIN is currently putting its efforts behind a persuasive campaign to prove its credibility to lawmakers as a publicly traded company on American exchanges. The company aims to address concerns regarding its connections to China, supply chain practices, and utilization of a trade law exemption.

In November, SHEIN was valued at $66 billion and is expected to be one of the most significant listings of the year. A key retail partner said that SHEIN generates annual revenues of over $30 billion. This rapid rise has impacted the market share of various U.S.-based competitors such as Gap Inc., TJX Companies, and Macy’s, while also posing complexities to mass-market players like Target, Walmart, and Amazon.

Gaining recognition from the biggest authority in the retail sector, led by global retail giants and tech corporations, could potentially validate SHEIN in the eyes of federal lawmakers. This endorsement may also resolve some of the challenges experienced on SHEIN’s journey toward a U.S. initial public offering.

A retail consultant, Steve Dennis, who has served in executive roles at Neiman Marcus and Sears, acknowledged that SHEIN’s acceptance by the NRF could serve as a beneficial catalyst for the company.

He said, “I don’t think that would automatically mean the [New York Stock Exchange] or the federal government’s going to be OK with them, but I think it would be kind of a feather in their cap, a meaningful step in the right direction.” Dennis added, “You sort of look at the NRF as being the voice of the industry, so if it’s OK with them, maybe it should be OK for us.” 

According to sources close to the matter, the NRF has not fully rejected SHEIN’s membership application. Instead, discussions have been ongoing between the NRF and SHEIN regarding its application, with indications that the trade group remains open to welcoming SHEIN as a member.

An NRF spokesperson said the organization “does not comment on our membership process or on individual retailers.” Additionally, the NRF “disagrees with many of the characterizations” in CNBC’s report but would not give further details.