UK online retailer Boohoo to invest £500 mn to meet growing demand

Boohoo Group, a UK-based online fashion retailer, has announced its investment programme of £500 million across UK over the next five years to meet growing demand. This plan was reported in Boohoo’s ‘Economic Impact Report’, published this week presenting the current and historic gross value added (GVA) that Boohoo contributes and has contributed to UK’s economy.

 

The report identified the scale of the group’s contributions, including: in the financial year 2020/21, the group’s operations added £559.4 million in GVA to the UK, supporting an estimated 8,050 Full Time Equivalent (FTE) jobs; the GVA figure (£559.4 million) equates to around 4.4 per cent of the total UK clothing and footwear retail sector; since 2009, the group’s operations have added almost £2 billion in GVA to the UK’s economy; and for every job directly created by the group, a further 1.7 jobs are created in the wider economy

 

The investments will help the company continue the incredible growth it has experienced since launching 15 years ago, expanding from a single brand in 2006 to a group of 13 world class brands today, the British retailer said in a statement.

 

The Boohoo Group, which is rooted in the north of England, has a growing global appeal, with c.50 per cent of its sales now coming from international markets such as US and Australia, according to the company’s statement. In order to meet this increased demand, Boohoo has set out its plans to secure additional warehouse space and invest in ‘smart IT solutions’ which will help its processes to become more efficient.

 

The report also highlighted the regional impacts of the group’s operations, with 94 per cent of the jobs and economic benefit created by boohoo group taking place outside of London. Burnley is home to the group’s international distribution centre and Manchester is where the company’s head office is located. Across the north west, the group contributed £309 million in GVA to the regional economy and – as of January 2021 – employed 3,208 people in the region.

 

“The growth this business has experienced over the last 15 years has been phenomenal. It has not been without its challenges, but it is right to celebrate the significant contributions the company makes to the towns and communities where we operate. The investments we have planned will help us to continue our growth, increasing our customer base both at home and abroad, adding even more value as we do so,” John Lyttle, CEO at Boohoo Group, said in a press release.

 

“All of this has only been possible because of the amazing people who form our Boohoo family. I am so proud of the way they rise to every challenge and I look forward to growing together as w