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Lululemon announced Friday, Apr. 19, that it will be closing its Washington distribution facility and laying off 128 workers.

"Following a review of our current infrastructure and the evolution of our fulfillment strategy, which includes a multi-year investment to increase overall capacity and support our growth, we have made the decision to close one of our smaller distribution centers - located in Sumner, WA," a Lululemon spokesperson said

Lululemon to Close Sumner Distribution Center and Lay off Employees

In a report by CNBC, the sports clothing store informed the state's Employment Security Department of its intentions to shut its distribution facility in Sumner and to lay off 128 workers via a Worker Adjustment and Retraining Notification (WARN) notice that was filed on Thursday, Apr. 18.

The WARN notice said that layoffs would begin on June 21. A representative from Lululemon has said that the store plans to shut down by the end of the year.

As a consequence of optimization, about 128 jobs will be lost at the current Sumner distribution site. Meanwhile, some workers will be retained and moved to other locations, such as Lululemon's newly built warehouse in the Los Angeles region. "We are committed to supporting our impacted employees through this transition," said the representative.

The company's securities filings indicate that the lease for the 150,000-square-foot property will expire in July 2025.

According to securities filings, Lululemon began operating a warehouse in Sumner in 2010. This facility appears to be the first significant distribution center that the firm established in the United States after its 2007 public offering.

Lululemon's Warehouse Space Tripled to Accommodate Rapid Growth

This decision came after Lululemon's warehouse footprint had broadened in recent years to meet the company's fast expansion demands.

Legal documents reveal that as of January 2021, Lululemon had 1.12 million square feet of warehouse space in the US and Canada. By the end of January, almost 4 million square feet had been occupied.

The expansion is mostly attributable to two more locations leased by Lululemon outside of the major cities of Toronto and Los Angeles.

Reportedly, it renewed its lease on a 1.26 million-square-foot property in Ontario, California, just outside of Los Angeles, in 2021. In 2022, it leased a 980,000-square-foot warehouse in Brampton, Ontario, just outside of Toronto.

Over the last decade, Lululemon has become one of the most well-known brands among youth and a dominant force within the sportswear market. Annual sales have increased from $1.6 billion in fiscal 2013 to $9.6 billion in fiscal 2023.