Boohoo boosts US business with DHL link-up
One of the major problems Boohoo Group has faced in recent periods is slow delivery outside of its core UK market. And a new development suggests that it may be overcoming this issue as it links up with DHL Supply Chain, which will manage its first-ever US distribution centre.
This should give the fashion retailer efficient warehousing solutions to help it drive faster growth in the US.
The company will open a giant distribution centre in Pennsylvania early next year and that should mean it can offer next-day delivery in the lucrative New York City metro region. The centre will be operated by DHL Supply Chain.
“We have a loyal and growing customer base in the US and want to provide them with a faster and smoother service than we can currently offer from the UK,” said David James, supply chain director at Boohoo. “Investing in our distribution network in the US illustrates the confidence we have to grow our business in this important market.”
Slow deliveries are a major problem for online retailers and one that has been mentioned by multiple companies in recent periods. Since Brexit, the pandemic and the start of the war in Ukraine, supply chains have been very much in the news and retailers have been taking a number of actions to deal with the issues, including bringing some production closer to home but also opening major new distribution centres in key markets.
The new Boohoo facility is expected to employ around 1,000 people in its first year with almost 2,500 eventually working on the site. As well as human workers, it will also have a high level of automation.
Boohoo has been shipping to the US from the UK for 16 years now but the need to expand and consumer expectations of ever-faster delivery mean that’s no longer a practical option.
And as well as speeding up delivery, the new facility should cut the firm’s transportation costs.
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