Boohoo plans to close its Pennsylvania distribution centre to focus on sustainable growth.
- The centre, a 1.1 million sq ft facility, began operations in August 2023.
- Boohoo will shift US order fulfilment to its UK distribution centre in Sheffield.
- This move followed a successful trial offering a broader product range to US customers from the UK.
- Operations at the US site are expected to end by 11 November 2024.
Boohoo, a fast-fashion group, is closing its distribution centre located in Elizabethtown, Pennsylvania, by the end of the year. This strategic decision aligns with Boohoo’s aim to reposition the group for sustainable, profitable growth, as stated by the company on 11 September.
The Pennsylvania facility, which covers 1.1 million square feet and commenced operations in August 2023, will stop supplying US customers. Boohoo has announced that it will sublet the property, which is operated under a third-party agreement.
Instead of using the US facility, Boohoo plans to fulfil all US orders from its automated UK distribution centre in Sheffield. Prior to a recent trial, US consumers had access to only 60% of the styles available to UK shoppers. This trial has demonstrated encouraging results, allowing Boohoo to offer a broader range of products to its US market.
The company’s development of wider routes-to-market strategies includes launching Nasty Gal in Nordstrom stores, further diversifying its operational approach. Boohoo anticipates terminating operations at the Pennsylvania centre by 11 November 2024, with further details expected in the company’s forthcoming half-year results.
Boohoo’s closure of its US distribution centre signifies a strategic shift towards improved operational efficiency and market reach.
