Online fast fashion retailer Boohoo is to open a new UK warehouse in Daventry in a move that will give the group a net sales capacity in excess of GBP4bn (US$5.5bn).
Boohoo says it has agreed a long-term lease for the site, which is due to become operational in the second quarter of the group’s financial year.
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“This site will support the group’s expansion and adds capacity in addition to its existing facilities in Burnley, Sheffield and Wellingborough. In aggregate, these sites will give the group net sales capacity in excess of GBP4bn,” the retailer notes.
The new warehouse is scalable, with Boohoo expecting to invest more than GBP50m in the coming years, increasing capacity and offering the group operational flexibility as it grows.
The deal is expected to secure up to 500 jobs and in the future create up to a further 1,000 jobs as capacity increases at the site.
Boohoo substantially cut its supplier network last month following an investigation into its supply chain last year.
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By GlobalDataThe retail group, which has been trying to repair its reputation after concerns were raised last year about its Leicester suppliers being underpaid and working in unsafe conditions, cut its manufacturer network to 78, operating across 100 sites, from an estimated 500, which included subcontractors.
It has also published a list of its suppliers and received praise from Sir Brian Leveson for its work so far in his second progress report published on 25 March.
