boohoocom-plc-final-admission-document-5-march-2014

Website, IT and Systems
boohoo’s public websites are provided through a shared e-commerce platform, in respect of the UK website,
and an externally hosted system in respect of the French website. The Group’s office systems are based on
mainstream commercial software, and hosted by the Company at its head office.
The Company has plans to further invest in its IT systems during 2014 to ensure expected sales growth is
underpinned by robust infrastructure.
Tablets and smart phones are increasingly being used to browse and buy online, particularly by younger
consumers. It is estimated that over 20 per cent. of 15-24 year olds browse or buy apparel on tablets or
smartphones, versus 10 per cent. for consumers as a whole (source: Mintel). In December 2013, over 35
per cent. of boohoo’s sales were made via a mobile device.
A new, bespoke mobile site is due to be launched in 2014 with a more user-friendly interface and increased
functionality. boohoo is also considering the launch of a mobile application alongside the new mobile website.
Warehouse and Distribution
boohoo’s warehouse operates 24 hours a day, seven days per week from a modern facility with a mezzanine
level, over 150,000 sq. ft. of space and approximately 100,000 product locations, located in Burnley, North
West England. The site is located close to the motorway road network and approximately 40 miles from
Manchester International Airport. Currently all UK and international orders are fulfilled from the UK warehouse.
The Company also utilises an inbound processing centre in Simonstone, 5 miles outside Burnley.
The Directors intend to increase the capacity of the Burnley warehouse in order to manage the expected
future growth in sales. Over the next 12 months the Directors intend to extend the existing site to provide
an additional 100,000 sq. ft. of warehouse space at an estimated cost of £6.5 million.
boohoo typically offers free standard delivery on all UK orders over £40, whilst free delivery is available for
European orders over €25. Express delivery carries an additional charge in all territories. Free returns are
offered on all UK deliveries, whilst international customers must return products at their own expense.
The Group delivers products using a number of carriers including DX Group, An Post, Royal Mail, Parcelforce,
Hermes and DHL. Deliveries are distributed between the carriers with two major carriers being used for
each service (next day, international etc.) to reduce risk and provide pricing competition.
boohoo is in the process of implementing a new warehouse management system (“WMS”). Warehouse
management is currently carried out via a module of the Sage accounting system, however, the projected
growth of the business will require a standalone WMS to manage the growth in the volume of transactions
whilst delivering additional operational efficiencies. The system to be implemented is a stand alone WMS,
provided and maintained by a third party, and will enable more efficient stock control and management. The
current intention is that the WMS will be implemented by mid 2014.
Domain Names and Trademarks
boohoo owns a portfolio of internet domain names, trademarks and other intellectual property, both in the
UK and overseas. The Directors believe that this portfolio will enable the Group to implement its global
strategy and protect its business in each of its key markets.
5. GROUP STRATEGY
The Group’s strategy is built around four key pillars of growth – Recruitment, Reach, Retention and Keeping
it Real.
Annex I 6.4
Recruitment of New Customers
The number of new customers visiting boohoo has grown (both in the UK and globally) as awareness of the
brand has increased and through the increase in online clothing and footwear retailing. The Directors believe
that these factors will continue to drive growth, alongside boohoo’s strategy to broaden the appeal of the
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