The British fast-fashion company Boohoo is attempting to “reposition the group for sustainable, profitable growth” by moving to a UK-fulfillment model for its US client base.
Boohoo announced in a statement that it will no longer be providing products to US consumers from its US distribution centre in Pennsylvania and that all US orders will now be fulfilled from its cutting-edge automated UK distribution centre in Sheffield.
Its plan to increase its routes to market and diversify its product offering for the US includes the addition of this move. It comes after a recent test that yielded positive results and expanded the product selection available to US customers by fulfilling from the UK. Prior to this experiment, only around 60 per cent of the styles were available to US consumers.
The 1.1 million square foot US distribution centre for the firm opened for business in August 2023 and is located in Elizabethtown, Pennsylvania, southeast of Harrisburg. Boohoo will now sublease this property lease, which is managed by a third party.
Boohoo operations at the US location are expected to conclude by November 11. Additional information will be included in the group’s half-year report.
Boohoo also mentioned that it has been creating more expansive routes-to-market plans, the first of which is the current introduction of Nasty Gal in Nordstrom retail locations. Furthermore, the group is in “advanced talks” regarding new marketing avenues for additional group brands with large US brands.
