Lululemon Athletica plans to optimise its business operations by closing its distribution center in Washington by the end of the year, and laying off over 100 employees
According to a WARN notice filed with the state’s Employment Security Department, the
Vancouver-based firm will shutter the Sumner distribution center and cut 128 jobs beginning June 21. The lease for the 150,000 sq ft distribution center will end in June 2025.
The move is a result of the slowing demand being witnessed by Lululemon for its premium athleisure in North America. Excessive inventory levels with sporting retailers in this region have resulted in lower orders for sportswear and apparel firms.
The company plans to retain some of its employees and relocate them to other facilities, including the recently opened distribution center in greater Los Angeles area.
In 2021, the retailer in 2021 entered into a new lease for an about 1.26 million-sq-ft distribution center in Ontario city in California. The lease expires in 2039. Lululemon also owns a distribution center in Groveport, Ohio, while leases majority of its other facilities located across the United States, Canada and Australia.
