In The Style Group, which reported its full-year results this week, says a move to a new warehouse by the end of September this year will improve fulfilment efficiency for the brand.
The company, which recently helped to raise more than £1.25 million for Dame Deborah James’ Bowelbabe fund for Cancer Research UK, anticipates exceptional costs of £500,000 in relation to the move.
The digital womenswear fashion brand hopes the move will help it to gain efficiencies on a cost per unit basis after distribution costs increased by 36% to £10m for the year, equivalent to 17.5% of revenue.
Increases in direct warehouse costs were the result of staff labour inflation, an increased out of hours operation to keep up with rapid growth and the outsourcing of returns on a short-term basis to allow the brand more warehouse space.
In The Style Group said that increase to product costs and the cost of freight impacted gross margin, while delivery times also became less predictable. However, it said it responded to supply chain