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Lululemon Faces Closure of Distribution Center in Washington
Lululemon, the well-known athletic apparel company, is in the process of shutting down its distribution center in Sumner, Washington. The decision to close this facility, which is among the smaller distribution centers operated by Lululemon, comes as part of the company’s strategic review of its infrastructure and fulfillment strategy.
Layoffs and Employee Impact
As a result of the closure, Lululemon is expected to lay off 128 employees associated with the Sumner facility. The company plans to begin the layoffs on June 21, with a target completion date by the end of 2024. While some employees will be retained and relocated to other facilities, just over 100 positions are set to be eliminated.
Those employees who are retained will have the opportunity to transition to other Lululemon distribution centers, including the recently opened facility in Los Angeles. The company has expressed its commitment to supporting the affected employees during this transition period, although specific details regarding this support have not been disclosed.
Lease Expiration and Company Strategy
According to Securities and Exchange Commission (SEC) filings, Lululemon’s lease for the Sumner facility was set to expire in July 2025. With the closure of the Washington distribution center, Lululemon will be left with a total of five operational facilities across its distribution network.
The decision to close the facility in Washington comes at a time when Lululemon is facing challenges in reaching U.S. consumers. During a recent earnings call, Calvin McDonald, the company’s CEO, acknowledged that the U.S. market has been soft, and the company is navigating a dynamic retail environment as part of its overall business strategy.
In light of these developments, Lululemon’s stock has seen a decline as the company grapples with the changing market dynamics and consumer behavior in the United States.
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