Changes to boohoo operations in the US market
11 September 2024
boohoo group plc
("boohoo", the "Company" or the "Group")
Changes to boohoo operations in the US market
boohoo group plc (AIM: BOO), a leading online fashion group, announces changes to its operations in the US market as it seeks to broaden its product offering for US customers and expand its routes to market. The moves are the latest in a series of steps as part of the strategy to reposition the group for sustainable, profitable growth.
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.
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.
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Enquiries: |
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boohoo group plc |
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Mike Cooper, Head of Investor Relations |
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Zeus Capital - Nominated adviser and broker |
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Dan Bate / James Edis |
Tel: +44 (0)161 831 1512 |
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Benjamin Robertson
HSBC - Joint Broker
Chloe Ponsonby / James Hopton |
Tel: +44 (0)20 3829 5000
Tel: +44 (0)20 7991 8888
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Headland - PR agency |
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Susanna Voyle / Will Smith |
Tel: +44 (0)20 3725 7514 |
Notes to Editors:
Boohoo group's US distribution centre is a 1.1m sq ft facility in Elizabethtown, Pennsylvania, southeast of Harrisburg that started operating in August 2023. It is operated by a third party and is a property lease that boohoo will now sublet. It is anticipated that boohoo operations at the site will end by 11 November 2024.
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo group is a fashion forward, inclusive and innovative business. The Group's brands are complementary, vibrant and scalable, delivering inspirational, on-trend fashion to our customers 24/7. The diversity of our brands, including the group's 5 core brands, boohoo, boohooMAN, PrettyLittleThing, Karen Millen and Debenhams, enable us to serve a broad customer base, globally, with a primary focus on the UK and US markets. Since its acquisition in 2021, Debenhams has been transformed from a retailer into a digital marketplace with a capital-light, low-risk operating model and a focus on fashion, beauty as well as home. Boohoo group is concentrated on driving sustainable, profitable growth with technology and automation increasing efficiency across the business..
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