Boohoo is to cease US order fulfilment from its much-heralded Pennsylvania distribution centre (DC) following a reassessment of the cost of holding adequate stocks of all products in the UK and the USA. The DC, which was leased by Boohoo but operated on its behalf by a third party, will now be sublet.
From November, US orders will be fulfilled from Boohoo’s automated distribution centre in Sheffield. The business said this would significantly reduce ongoing costs over the medium term.
In a statement, Boohoo said: “The Group remains excited about the opportunity in the US and has been developing wider route-to-market strategies, the first of which is the recent launch of Nasty Gal in Norstrom stores. The Group is also in talks with major US brands with regard to new routes to market for other brands within the Group.”
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