Manchester, UK-based Boohoo Group PLC is an online store that offers a range of clothing, accessories, and footwear brands. The group claims to have witnessed extensive growth in the UK as well as internationally as it generates sales in excess of £1B (approx €1.17B). It was founded in 2006 by Mahmud Kamani and Carol Kane.
Boohoo Group to create 5,000 jobs
In a recent development, Boohoo Group announced that it is planning to create 5,000 new jobs off the back of an investment programme worth over £500M (approx €587.74M) across the UK in the next five years. The announcement on jobs and investment is set out in boohoo’s ‘Economic Impact Report’, published recently, which details the current and historic gross value added (“GVA” ) that boohoo contributes and has contributed to the UK’s economy.
Fresh funds for growth
The investments will help the company to invest in the growth it has experienced since launching 15 years ago – wherein it expanded from a single brand in 2006 to a group of 13 brands.
The company’s brands, boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, Miss Pap, Karen Millen, Coast,Oasis & Warehouse design, sources, markets and sells clothing, shoes, accessories, and beauty products.
In a statement, the Boohoo Group reports that it has a growing global appeal, with c.50 per cent of its sales now coming from international markets such as the USA and Australia. And to fulfill this increased demand, the Group has set out its plans to secure additional warehouse space and invest in ‘smart IT solutions’ to help its processes become more efficient.
GVA that Boohoo contributes to the UK’s economy
Gross Value Added or GVA is the measure of the value of goods and services produced in an area, industry or sector of an economy.
According to the Economic Impact Report, it highlights the Boohoo Group’s activities in supporting British job creation. The scale of its contributions to the UK’s economy includes:
- In the financial year 2020/21, Boohoo 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 per cent of the total UK clothing and footwear retail sector
- Since 2009, Boohoo group’s operations have added almost £2B 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 shows the regional impacts of the group’s operations, with 94 per cent of the jobs and economic benefit created by Boohoo Group taking place outside of London. 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.
Speaking about the report, Boohoo Group’s CEO John Lyttle says, “The growth this business has experienced over the last 15 years has been phenomenal. 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.”
Secure and stable employment for people
As per the Economic Impact Report, in logistics, for example, the Boohoo Group 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 support an estimated 1,660 jobs in the financial year 2020/21.
Besides, the report also covers how the Boohoo Group is working to ensure secure and stable employment for people. In the last financial year, the group moved over 1,400 agency colleagues from its warehouse teams onto permanent boohoo contracts – wherein they are able to share in the full benefits package which includes; generous pension scheme, competitive pay rates (that don’t differentiate between age groups), and more including a free annual share allocation.