Canadian sports apparel retailer Lululemon said it plans to close its Sumner, Washington, warehouse and lay off more than 100 employees by the end of the year.
Sports apparel company filed Worker Adjustment and Retraining Notice (WARN) news He met with the Washington State Employment Security Department (ESD) on Thursday.
Lululemon said in a notice posted on ESD’s website that layoffs at the 150,000-square-foot warehouse will begin June 21, with 128 employees scheduled to be laid off.
In Sumner’s warehouse lease This deadline is set for July 2025.
in statement A spokesperson told CNBC News:
As we continue to execute our growth strategy to meet the needs of our customers, we regularly evaluate our distribution network to help shape and support our vision for the future of our business. One of its smaller distribution centers in Sumner, Washington, following a review of its current infrastructure and evolution of its fulfillment strategy that included a multi-year investment to increase overall production capacity and support growth. has decided to close down. ”
The optimization will eliminate just over 100 positions within the existing Sumner distribution center, although some employees will be retained and relocated to other facilities, including a recently opened distribution center in the Los Angeles metropolitan area. . We are committed to supporting affected employees through this transition.
Between the end of January 2021 and the end of January 2024, Lululemon more than tripled the square footage of its leased or owned distribution centers across Canada and the United States, from 1.12 million square feet to approximately 4 million square feet. It became.
The company’s plan to close the Sumner warehouse comes amid reportedly declining sales in North America.
In March, Lululemon predicted that its annual sales and profits would be: Under Expectations were reversed as the company’s stock plunged 11% in extended trading as customers spent less.
