Source - Alliance News

boohoo Group PLC on Wednesday said it would be making changes to operations in the US, in order to broaden its product offering for customers across the pond.

The Manchester, England-based fast fashion retailer intends to stop supplying US customers from its US distribution centre in Pennsylvania, and will fulfil these orders via an automated UK distribution centre in Sheffield.

This decision, boohoo explained, follows a recent trial, whereby the firm increased its product range offering to US consumers by also fulfilling these orders from the UK.

Before this trial, US consumers were being offered only around 60% of the styles on sale in the UK.

Looking ahead, boohoo said that it remained ‘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.

It is also in advanced talks with ‘major US brands’ regarding new routes to market.

Looking ahead, the retailer said these changes would result in a significant reduction in ongoing costs over the medium term.

boohoo Group shares fell 2.2% on the news to 27.90 pence each in London on Wednesday morning.

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