Boohoo creates 5,000 jobs as it invests £500m

Manchester online fashion giant Boohoo said on Thursday it has outlined plans to create 5,000 new jobs with an investment programme worth over £500 million across the UK over the next five years.

The announcement on jobs and investment is set out in Boohoo’s “Economic Impact Report” which the comany said details the gross value added (GVA) that it contributes to the UK’s economy.

Boohoo has had to address criticism in recent years of poor working conditions and wages at some of its suppliers.

Boohoo said the group’s operations added £559.4 million in GVA to the UK economy in the financial year 2020-21, supporting an estimated 8,050 full time equivalent (FTE) jobs.

It said the group’s operations have added almost £2 billion in GVA to the UK economy since 2009.

“In logistics, for example, the group employs 7,000 people at four distribution centres in the UK and ships between 190,000 and 230,000 parcels a day,” said Boohoo.

“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 group taking place outside of London.

“Burnley is home to the group’s international distribution centre and Manchester is where the company’s head office is located.

“Across the north west, the group contributed £309 million in GVA to the regional economy and – as of January 2021 – employed 3,208 people in the region.

“Finally, the report also covers how 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, where 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.”

Boohoo group CEO 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.”