Boohoo reveals plans to create 5,000 jobs over five years
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Manchester-based online retail giant Boohoo says it hopes to create 5,000 jobs over the next five years as part of an investment programme of more than £500m.
The growth of international sales in countries including the US and Australia, which account for around 50% of total turnover, will mean the group has to extend its warehousing capacity and invest in ‘smart IT solutions’ to help its processes become more efficient.
Today’s announcement is set out in Boohoo’s ‘Economic Impact Report’ which reveals the current and historic gross value added that the group contributes and has contributed to the UK’s economy.
The report identifies the scale of the group’s contributions, including:
- In the financial year 2020/21, the group’s operations added £559.4m in GVA to the UK, supporting an estimated 8,050 Full Time Equivalent (FTE) jobs
- The GVA figure (£559.4m) equates to around 4.4% of the total UK clothing and footwear retail sector
- Since 2009, the group’s operations have added almost £2bn in GVA to the UK’s economy
- For every job directly created by the group, a further 1.7 jobs are created in the wider economy
The report also outlines the importance of the group’s activities in supporting British job creation.
It reveales that, in logistics, for example, Boohoo employs 7,000 people at four distribution centres in the UK and ships between 190,000 and 230,000 parcels a day. These parcels are handled by 13 main courier companies and supported an estimated 1,660 jobs in the financial year 2020/21.
The report also highlights the regional impacts of the group’s operations, with 94% of the jobs and economic benefit created by Boohoo taking place outside of London.
Burnley is the base for the group’s international distribution centre and Manchester is the company’s head office location. Across the North West, the group contributed £309m in GVA to the regional economy and – as of January 2021 – employed 3,208 people in the region.
The report also covers how Boohoo is working to ensure secure and stable employment for people.
In the last financial year the group moved more than 1,400 agency staff from its warehouse teams onto permanent Boohoo contracts.
Chief executive John Lyttle said: “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.”
He added: “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.”