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Fashion retailer Boohoo to invest in automation in further warehouse extension

Fashion retailer Boohoo, which announced its latest year-end results this week, is to further extend its warehouse with planning permission secured for the next stage of its warehouse expansion. It follows the completion of a large warehouse extension this year.

The warehouse extension this year saw the facility expanded by three more mezzanine floor layers, increasing capacity by another 275,000 square feet to 525,000 square feet total capacity – a total the company says is sufficient for medium term future growth.

The second warehouse extension – which will incorporate a significant amount of automation – will commence construction this summer. The company is also refurbishing and expanding its welfare facilities at the warehouse, which will include an enlarged new canteen, rest area and gym and will be completed by summer 2017.

“It has been a momentous year for us, with strong results and the acquisitions of PrettyLittleThing on 3 January 2017 and the Nasty Gal brand on 28 February 2017,” said Mahmud Kamani, joint CEO. “

This year has seen some major capital and infrastructure expenditure. We invested in a large warehouse extension and additional office space to provide for our planned further growth and we have secured planning permission for the next stage of the warehouse expansion,” he said.

As well as expanding its warehouse the retail group is also pushing hard on its delivery proposition for customers and is one of a number of retailers to try to tie in customers with unlimited next day delivery passes. The company’s Premier delivery service allows customers unlimited next day delivery for a year for a one-off payment of £9.99, although the service is restricted to certain postcodes.

Image credit: Boohoo

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