British online fashion retailer boohoo has revealed plans to cease supplying US customers from its Pennsylvania site, Reuters has reported.

The retailer will instead fulfil orders from its automated centre in Sheffield, UK.  

boohoo expects the move to result in an unspecified writedown on its balance sheet. More details will be made known in its half-year results. 

The company plans to exit the Pennsylvania distribution centre by 11 November 2024, just over one year since it began operations.  

boohoo aims to sublet the third-party managed space. 

Following the announcement, shares of boohoo dropped by 2% in early trading, furthering its 2024 losses to 32%.

boohoo CEO John Lyttle previously praised the Pennsylvania site for reducing delivery times to US customers.  

Despite this, the decision to revert to its UK-based fulfilment centre cites reductions and an expanded product range for US consumers as key benefits of the strategy reversal. 

boohoo expressed continued enthusiasm for the US market and recently introduced its Nasty Gal brand in Nordstrom stores as part of its broader market strategy.  

The retailer is also in advanced discussions with major US brands to explore new market avenues for its other brands. 

In July 2024, boohoo launched a new initiative for social commerce, known as the boohoo Collective.