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Boohoo bets on new "super-site"

The fast-fashion e-tailer has announced plans for a new warehouse, with a higher degree of automation aimed at making it more efficient
June 14, 2017

As more companies come under scrutiny for the way in which they treat employees, it is no surprise that some groups are trying to find more efficient ways of working. In 2016, the retail sector was blighted by allegations surrounding treatment of workers at warehouses, fulfilment centres and manufacturing facilities. One such accused included fast-fashion online retailer Asos (ASC), which has categorically denied any known wrongdoing.

IC TIP: Hold at 249p

This week, Asos's close competitor Boohoo.com (BOO) announced it had raised £50m to help fund a new automated "super-site". It is expected to span 600,000 sq ft, and could provide Boohoo with over £2bn-worth of extra net sales capacity. It seems it will certainly need it: total revenue more than doubled during the three months ended 31 May 2017, with the main Boohoo brand alone enjoying a 48 per cent growth spurt. The remainder was made up by PrettyLittleThing and Nasty Gal - the two acquisitions Boohoo made last year. However, even on a like-for-like basis, revenues still rose by a staggering 78 per cent.

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