Lululemon Athletica (NASDAQ:LULU)revealed its plans on Friday to close its distribution center in Washington state by the end of the year, resulting in the termination of over 100 jobs. The decision to shutter the Sumner facility aligns with the company’s ongoing efforts to streamline its operations.
According to a WARN notice filed with the state’s Employment Security Department, 128 positions will be eliminated starting June 21. This move reflects Lululemon’s response to sluggish demand for its premium athleisure products in North America, compounded by elevated inventory levels at sporting retailers, leading to decreased orders for sportswear and apparel brands.
The lease for the Sumner distribution center, covering 150,000 square feet, will expire in July 2025, as disclosed in regulatory filings. While some employees may receive offers for roles at other facilities, including the newly opened distribution center in the greater Los Angeles area, many will face job losses.
In 2021, Lululemon secured a lease for a 1.26 million-square-foot distribution hub in Ontario, California, with a lease term until 2039. Additionally, the company operates a distribution center in Groveport, Ohio, while leasing most of its other facilities across the United States, Canada, and Australia.
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