Boohoo to supply US consumers from the UK
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British fast-fashion group Boohoo is switching to a UK-fulfilment strategy to supply its US customers as it seeks to “reposition the group for sustainable, profitable growth”.
In a statement, Boohoo said it would cease supplying US customers from its US distribution centre in Pennsylvania and will now fulfil all US orders from its state-of-the-art automated UK distribution centre in Sheffield.
The move it adds is part of its strategy to broaden its product offering for the US and to 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 this trial, US consumers were being offered only around 60 percent of the styles on sale in the UK.
The group's US distribution centre is a 1.1 million square foot facility in Elizabethtown, Pennsylvania, southeast of Harrisburg that started operating in August 2023. It’s run by a third party and is a property lease that Boohoo will now sublet.
It is anticipated that Boohoo operations at the US site will end by November 11. Further details will be outlined in the group's half-year results.
Boohoo also added that it has been developing wider routes-to-market strategies, the first of which is the recent launch of Nasty Gal in Nordstrom stores. In addition, the group is in “advanced talks” with major US brands about new routes to market for other brands within the group.