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.
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.
This is because customers are still flocking to Boohoo's websites. Active customer numbers on the main site rose by nearly a quarter over the same period, while PrettyLittleThing logged a 146 per cent surge in traffic. In order to cope with this demand, the group has already started work to expand its Burnley warehouse site, adding 900,000 sq ft of storage to the existing 996,000 sq ft. However, this is not due for completion until 2018.
The new site will be sophisticated in its use of technology, says chief financial officer Neil Catto. A new conveyor system will mean less time walking for warehouse employees and orders will be collected together by machines. Sorting of packages ready for dispatch will also be made more efficient. However, Mr Catto was keen to emphasise that while the group hoped "to grow without the constrain of labour" the new site would ultimately create jobs, rather than diminish Boohoo's overall headcount.
