Boohoo partners with DHL for US expansion

DHL is supporting existing client Boohoo on its expansion into the US by opening a 1.1 million sq ft facility based in Elizabethtown, Pennsylvania.

DHL Supply Chain, part of Deutsche Post DHL Group, will be managing the company's first distribution centre on US soil, despite already shipping to the destination.

Following Boohoo’s success since its launch in 2006, its popularity in the US continues to skyrocket. The fashion company generates over £2.1 billion ($2.4 billion) per annum, with the new overseas delivery solution promising further growth.

David James, Supply Chain Director, commented: “We have a loyal and growing customer base in the US and want to provide them with a faster and smoother service than we can currently offer from the UK. Investing in our distribution network in the U.S. illustrates the confidence we have to grow our business in this important market. We chose DHL Supply Chain as our logistics partner because of their industry-leading expertise in managing highly complex e-commerce operations and their proven track record with successful startups in the space.”

This new space, expected to open in early 2023, will help them reduce transportation costs, reduce transportation cost, improve service, and speed. The company will be able to offer next-day delivery services to the New York City metro region, a key customer base.

Kraig Foreman, President of eCommerce at DHL Supply Chain, added: “Although Boohoo has been servicing the U.S. through its existing network in the U.K. since 2006, the company’s growing order volumes and customer demand on this side of the pond in recent years made a U.S.-based distribution centre for direct-to-consumer fulfillment a necessity.”

The site will feature advanced technology, such as an Automated Storage and Retrieval System (ASRS) and a high-speed pouch sorter. These systems are the most cutting-edge on the market, which work to put away and replenish inventory in addition to providing picking and packing sortation.

DHL Supply Chain will hire 1,000 warehouse employees in 2023, expecting to grow to 2,500 over the next three years. Associates will be able to utilize a fresh food canteen, as well as an on-site gym.

Listen to our recent podcast with Boohoo's David James here.