Lululemon to shutter Washington distribution centre, lay off 128 employees

Lululemon Athletica will shut its distribution centre within the state of Washington on the finish of the yr and lay off greater than 100 staff, the attire retailer informed Reuters on Friday.

The Vancouver-based agency will shutter the Sumner distribution centre as a part of its business optimization effort and lower 128 jobs starting June 21, in keeping with a WARN discover filed with the state’s Employment Security Department.

The transfer comes at a time when Lululemon is seeing slowing demand for its premium athleisure in North America, the place extreme stock ranges at sporting retailers has resulted in decrease orders for sportswear and attire companies.

“We regularly evaluate our distribution network to help shape and support the future vision of our business,” an organization spokesperson informed Reuters.

The lease for Lululemon’s 150,000-square-foot Sumner distribution centre will finish in July 2025, a regulatory submitting confirmed.

An organization spokesperson stated a few of the staff can be retained and relocated to different amenities, together with the just lately opened distribution centre in higher Los Angeles space.

The retailer in 2021 had entered into a brand new lease for an about 1.26 million-square-foot distribution centre in Ontario metropolis in California. The lease expires in 2039, its annual submitting confirmed.

Lululemon, shares of which have dropped greater than 31 per cent thus far this yr, additionally owns a distribution centre in Groveport, Ohio, whereas leases majority of its different amenities positioned throughout the United States, Canada and Australia.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi Majumdar)