Boohoo to close US distribution centre as it targets 'profitable' growth
Fast fashion giant Boohoo is closing its Pennsylvania-based distribution centre later this year as part of its strategy to "reposition the group for sustainable, profitable growth".
The company will now fulfil all US orders from its automated distribution centre in Sheffield, in a bid to broaden its product offering for shoppers in the US and expand its routes to market.
It follows a recent trial of increasing the product range offered to US consumers by also fulfilling from the UK, which has led to "encouraging results". Before the trial, US customers were only being offered around 60% of the styles available in the UK.
Boohoo said it "remains excited about the opportunity in the US" and has been developing wider routes-to-market strategies, including the recent launch of Nasty Gal in Nordstrom stores.
The business is also in advanced talks with major US brands for potential new market opportunities for its other brands.
It added that the move will also result in a "significant reduction" in ongoing costs over the medium term, with further details to be outlined in Boohoo Group's half year results.
The news comes after reports emerged last month that Boohoo was refusing to pay suppliers for poor quality clothing.
The decision was said to be part of a three-month programme of work to "improve quality following a marked increase in faulty goods being delivered by a small group of suppliers".
