Manchester-based online retailer, Boohoo, has outlined plans to invest £500m in the UK over the next 5 years.
The move, which will create 5000 new jobs, is to meet growing demand both at home and internationally.
With around 50% of sales coming from overseas, it plans to buy additional warehouse space and invest in ‘smart IT solutions’ to help it become more efficient.
“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,” said CEO John Lyttle.
“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 we cement our position as leaders in global fashion e-commerce.”
The “challenges” talked about by Lyttle, 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 publication of the group’s Economic Impact Report today is to showcase its contribution to the UK economy.
It states that its GVA (Gross Value Added) is £559.4m, or around 4.4% of the total UK clothing and footwear retail sector.
The company also reports that since 2009, its operations have added almost £2bn GVA to the UK economy and for every job it directly creates, a further 1.7 are added in the wider economy.
Boohoo also highlights its impact in the regions, with 94% of jobs and economic benefit taking place outside of London. Its international distribution centre is in Burnley, while its head office remains in Manchester.
In total across the North West, it contributed £309m in 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 boohoo group.
