Manchester-based online retailer Boohoo has announced plans to invest Â£ 500million in the UK over the next 5 years.
The move, which will create 5,000 new jobs, aims to meet growing demand both nationally and internationally.
With around 50% of its sales overseas, it plans to purchase additional warehouse space and invest in âsmart IT solutionsâ to help it become more efficient.
âThe growth this company has experienced over the past 15 years has been phenomenal. It has not been without challenges, but it is right to celebrate the important contributions the company makes to the cities and communities where we operate. The investments we have planned will help us continue to grow, expanding our customer base both at home and abroad, adding even more value in doing so, âsaid CEO John Lyttle.
âThis was all only possible because of the amazing people who make up our boohoo family. I am so proud of how they take on any challenge and look forward to growing together as we solidify our position as a leader in global fashion e-commerce.
The “challenges” Lyttle cites include the ongoing review of its supply chain, following reports of poor working conditions and illegal wages at some of its UK-based suppliers.
The release of the Group’s Economic Impact Report today is to showcase its contribution to the UK economy.
It says its GVA (gross value added) is Â£ 559.4million, or around 4.4% of the UK’s total retail clothing and footwear industry.
The company also reports that since 2009 its operations have added nearly Â£ 2bn of GVA to the UK economy and that for every job it directly creates another 1.7 is added to the wider economy. .
Boohoo also highlights its impact in the regions, with 94% of jobs and economic benefits outside London. Its international distribution center is in Burnley, while its head office remains in Manchester.
In total in the North West, it contributed Â£ 309million from GVA to the regional economy and – as of January 2021 – employed 3,208 people in the region.
The report was based on an analysis carried out by Development Economics Ltd at the request of the boohoo group.