The expansion will greatly improve picking efficiency and reduce costs in the financial year 2020 and beyond. Boohoo Group, which has announced its annual results, increased its distribution spend by an extra 1.5% in the year to 28 February in comparison to the 2018 financial year. The company said it sought to make "effective investments" in technology and AI.
The company’s increased focus towards distribution will see fulfil 30m units between the newly expanded Burnley and Boohoo’s sister brand PrettyLittleThing’s Sheffield site. PrettyLittleThing successfully relocated to a larger site in Sheffield last summer, with £6.7m spent towards the relocation.
The company said: “The addition of the Sheffield facility greatly increases our sales capacity, will help underpin PrettyLittleThing’s infrastructure needs and adds further operational flexibility for the group. We continue to invest in our infrastructure, with our operations at Burnley and Sheffield representing significant stepping stones as we build towards creating a distribution network capable of generating £3 billion of net sales globally.”
Substantial investments have been completed to secure warehouse capacity for growth and improve the future efficiency of the Burnley warehouse with automation, added the company, who revealed strong full-year sales and profits in the financial year to February.
The group saw a 97% leap in revenue to £579.8m in the year to March, as pre-tax profit rose 40% to £43.3m.
Growth was helped by the recently acquired PrettyLittleThing, which experienced a 228% rise in sales to £181.3m.
“Our extended Burnley distribution centre now has a significant element of automation, which will enhance productivity and improve efficiency,” concluded the company. “Following the addition of the Sheffield facility for PrettyLittleThing, our distribution centres in Burnley and Sheffield represent significant stepping stones as we build towards creating a distribution network capable of generating £3 billion of net sales globally.”