Boohoo shifts US fulfilment operations to UK

Boohoo is set to shut its US distribution centre and instead fulfil its stateside orders from its automated distribution centre in Sheffield. The retailer previously supplied its US customers from a distribution centre in Pennsylvania. 

The decision to shift US fulfilment operations to the UK comes as the group looks to broaden its product offering for US customers 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 led to “encouraging results”. Before this trial, US consumers were being offered only around 60% of the styles on sale in the UK, according to the group.

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.

It confirmed it is also in advanced talks with major US brands with regard to new routes to market for other brands within Boohoo.

Boohoo added that these moves will result in a write-down on its balance sheet against the investments and costs associated with the US operation, as well as certain one-off exceptional cash costs. 

However, it added that it will result in a “significant reduction” in ongoing costs over the medium term.