thredUP will open new 10 million item flagship distribution center in Dallas area to support growing demand for secondhand apparel

Rhea-AI Summary

ThredUp Inc. (NASDAQ: TDUP) announced a significant expansion with a new flagship distribution center in Lancaster, Texas, investing $70 million and creating 2,000 jobs. This nearly 600,000 square foot facility will be thredUP's largest, featuring automation and over double the item capacity, reaching 16.5 million items across its network. Expected to begin processing in Q2 2022, the center will initially handle 500,000 items. This move reflects thredUP's commitment to meet growing demand for secondhand apparel and enhance its resale operations.

Positive

• Investment of $70 million in a new distribution center.
• Creation of 2,000 jobs in Lancaster, Texas.
• Doubling item capacity to 16.5 million items across the network.
• State-of-the-art facility with advanced automation.

Negative

• None.

OAKLAND, Calif., Sept. 21, 2021 /PRNewswire/ -- ThredUp Inc. (NASDAQ: TDUP), one of the largest online resale platforms for women's and kids' apparel, shoes, and accessories, today announced the expansion of its operations in Lancaster, Texas in the Dallas-Forth Worth metroplex. thredUP anticipates the facility will create 2,000 jobs, and the company will invest $70 million in capital for the new distribution center.

thredUP's new 10M item flagship distribution center in Lancaster will support growing demand for secondhand apparel.

The new nearly 600,000 square foot facility located off I-35 and I-20 is expected to be thredUP's largest and most automated distribution center upon completion. It is designed to be thredUP's first four-level facility and upon completion will store as many as 10 million items – more than doubling the company's total capacity to 16.5 million items across its network. The state-of-the-art facility will enable the company to further scale its operating platform as more consumers resell their clothing and thredUP continues to build the selection in its marketplace to historic levels. According to thredUP's 2021 Resale Report, 52.6 million Americans resold apparel in 2020, and 76% of people who have never resold clothing are open to trying it.

thredUP's signature Clean Out Kit is available online at thredUP.com, or through brands and retailers who rely on its Resale-as-a-Service^Ⓡ (RaaS^Ⓡ) to deliver scalable, customized resale experiences to their customers, including apparel Clean Out. This announcement comes on the heels of new RaaS^Ⓡ deals with Madewell, FARFETCH, and Michael Stars. Learn more about thredUP's RaaS^Ⓡ here.

"thredUP's newest distribution center underscores our relentless investment in the technology and software that powers our network and enables us to deliver resale at unparalleled scale," said James Reinhart, Co-Founder and CEO at thredUP. "With expanded item capacity and automation capabilities, thredUP is accelerating its ability to unlock massive amounts of supply and building the backbone for resale on the Internet for our customers and RaaS clients."

thredUP expects to begin processing items in the new distribution center in Q2 2022 with an initial capacity of 500,000 items. The company expects to employ 300 people at this new location upon its opening with plans to employ 2,000 people total. For more information about job opportunities in thredUP's distribution centers, visit thredUP.com/careers. thredUP is headquartered in Oakland, CA, with offices in Scottsdale, AZ, New York, and Ukraine. thredUP was recently recognized as a finalist for Fast Company's World Changing Ideas Awards 2021.

About thredUP
thredUP is transforming resale with technology and a mission to inspire a new generation of consumers to think secondhand first. By making it easy to buy and sell secondhand, thredUP has become one of the world's largest resale platforms for women's and kids' apparel, shoes and accessories. Sellers love thredUP because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. In 2018, we extended our platform with Resale-as-a-Service^Ⓡ (RaaS^Ⓡ), which facilitates modern resale for a number of the world's leading brands and retailers. thredUP has processed over 125 million unique secondhand items from 35,000 brands across 100 categories. By extending the life cycle of clothing, thredUP is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.

Forward Looking Statements
This release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "predict" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Except as required by law, thredUP has no obligation to update any of these forward-looking statements to conform these statements to actual results or revised expectations.

Media Contact
Christina Schultz
thredUP
media@thredup.com

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SOURCE thredUP

FAQ

What is the significance of thredUP's new distribution center in Lancaster, Texas?

The new distribution center will enhance thredUP's operational capacity, allowing it to handle over 16.5 million items and create 2,000 new jobs.

How much has thredUP invested in the Lancaster distribution center?

ThredUP has invested $70 million in the Lancaster distribution center.

When will thredUP's new distribution center begin processing items?

ThredUP expects to start processing items in the new distribution center in Q2 2022.

What is the initial processing capacity of the new distribution center?

The initial processing capacity of the new distribution center will be 500,000 items.

How does thredUP's expansion support the secondhand apparel market?

The expansion to a larger automated facility addresses the growing demand for secondhand apparel, allowing for more efficient resale operations.