Fashion retailer Boohoo has said it will stop supplying US customers from its Pennsylvania distribution centre and will fulfil these orders from its UK warehouse in Sheffield.
The group said it is looking to “broaden its product offering for US customers and expand its routes to market”. The move is part of its strategy to put the group in a position of profitable growth.
The decision follows a recent trial where Boohoo increased the product range offered to US customers by also fulfilling from the UK. The group said this led to “encouraging results”.
Before the trial, US customers could only access around 60% of the styles on sale in the UK.
In a statement to the London Stock Exchange, Boohoo said: “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.”
Boohoo added that further details will be laid out in its half-year results and the new changes will result in a writedown on its balance sheet against the investments and costs related with the US operation.
This will result in a “significant reduction” in continuing costs in the medium term.
No comments yet