Boohoo is set to close its distribution centre in Pennsylvania as part of its strategy to achieve sustainable growth. This closure is central to Boohoo’s efforts to improve profitability.
- The 1.1 million square foot facility in Elizabethtown will stop serving US customers later this year.
- Operations in the US will be consolidated to Boohoo’s UK distribution centre in Sheffield.
- A trial showing potential benefits from expanding product offerings fulfilled from the UK was a key factor in this decision.
- Operations are expected to cease by 11 November 2024, with more details forthcoming in Boohoo’s half-year results.
Boohoo, the fast-fashion group, has announced the closure of its substantial distribution centre situated in Elizabethtown, Pennsylvania. This decision is a strategic move aimed at repositioning the company towards more sustainable and profitable growth avenues.
The Pennsylvania facility is a 1.1 million square foot space that initiated its operations in August 2023. However, driven by the goal of enhancing profitability, Boohoo will now cease using this US-based centre.
Moving forward, all orders destined for the United States will be processed from Boohoo’s advanced, automated distribution hub located in Sheffield, United Kingdom. This streamlined approach follows a successful trial that involved broadening the array of products available to US consumers, which previously was only about 60% of the styles offered within the UK market.
The trial proved successful, yielding encouraging results that have incentivised Boohoo to leverage its UK infrastructure to meet US demand effectively.
Previously, Boohoo had embarked on efforts to varying its market access strategies, notably with the recent introduction of Nasty Gal, one of its brands, into Nordstrom stores in the USA.
The closure of the Pennsylvania centre is scheduled to be completed by 11 November 2024. Further comprehensive details and implications of this strategic shift will be discussed in Boohoo’s half-year results, expected to be disclosed later.
Boohoo’s decision underscores its commitment to realign its business operations for sustainable growth and enhanced profitability.
