Boohoo to Fulfill US Orders From UK Distribution Centre

Online fashion retailer Boohoo (LON: BOO) announced a significant change to its operations in the United States in a press release on Wednesday.

The company revealed it will now fulfill all US orders from its automated UK distribution center in Sheffield rather than its Pennsylvania-based facility.

This shift comes after a successful trial where US customers were offered a more comprehensive range of products when orders were fulfilled from the UK.

“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,” said Boohoo.

The online fashion retailer said that previously, US consumers had access to only about 60% of the styles available in the UK.

Boohoo's decision to consolidate its US operations in the UK is part of its broader strategy to reposition the group for sustainable, profitable growth.

The company added that it “remains excited about the opportunity in the US” and is actively pursuing new routes to market, such as the recent launch of Nasty Gal in Nordstrom stores.

Boohoo also said it is in advanced talks with major US brands regarding new routes to market for other brands within the group.

While the changes will result in a one-time write-down and exceptional cash costs, Boohoo expects to achieve significant cost savings in the medium term.

Boohoo shares have struggled significantly over the last few years, trading around the 28.5p per share mark. In the previous 12 months, the stock is down over 14%, while so far this year it has declined more than 28%.