Boohoo says it is continuing to increase sourcing from near-shore markets to reduce its exposure to elevated inbound freight costs, the company revealed in its latest trading statement for the three months to 31 May 2022.
It said there had been a 10 percentage point increase in short-lead time product mix compared to the same time last year. The fashion retailer said it has also tightly controlled inventory, leading to lower levels of stock compared to its year-end and improvements in inventory turn and increased supply chain flexibility.
An automation project at its Sheffield distribution centre is still placed to go live in the second half of the financial year.
The group has also signed a lease for a new distribution centre in Elizabethtown in Pennsylvania. It says the new site will help to support its international growth ambitions “and transform the customer proposition in a key focus market”. Go live is anticipated for mid-2023.
Its international business continues to be impacted by increased delivery times, however.