Under the changes, boohoo is to 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. This move 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% of the styles on sale in the UK.

Boohoo Group (AIM: BOO) is shifting all US order fulfilment to its UK distribution centre, following a successful trial that expanded the US product range.
The move aims to reduce costs and reposition the company for growth.
Boohoo is also exploring new US market routes, including partnerships with major US brands and Nasty Gal’s launch in Nordstrom.

The Group remains excited about the opportunity in the US and has been developing wider routes-to-market strategies, the first of which is the recent launch of Nasty Gal in Nordstrom stores. The Group is also in advanced talks with major US brands with regard to new routes to market for other brands within the Group.

The moves will result in a write-down on the Group’s balance sheet against the investments and costs associated with the US operation as well as certain one-off exceptional cash costs. Importantly, these changes will result in a significant reduction in ongoing costs over the medium term. Further details will be outlined in the half year results.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (RM)