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Gymshark strengthens US CX with local distribution centre deal

Fast-growing UK fitness brand Gymshark has signed a long-term partnership with third party logistics provider Radial, which will see it run operations from two distribution centres in the US.

As part of the new tie-up, Gymshark will distribute its goods from Radial’s existing distribution hubs in Ohio and California. These sites – a 624,000 sq ft space in Groveport near Columbus, and a 475,555 sq ft facility in Rialto, just west of Los Angeles, respectively – already serve several other Radial clients.

The exact date operations will start is not yet confirmed, but Gymshark already sells its goods in around 131 countries. A dedicated distribution facility based in the US is a significant landmark for a brand that was co-founded in 2012 by Ben Francis, who, as a university student at the time, started the business off by stitching together products himself in his parents’ garage, before packing and distributing orders manually.

The company, whose co-founder Lewis Morgan left to pursue other business interests in the brand’s early days, has grown significantly in eight years. Success has been driven by a unique product, and a sophisticated use of social media, including YouTube videos featuring an influential network of fitness professionals.

Last year, Gymshark was listed second in the UK’s top 100 private companies with the fastest-growing profit. Its 2018 annual profit growth of 152% put it only behind online travel agency Loveholidays in the Sunday Times BDO Profit Track 2019 rankings, with the company making £18.1 million based on sales of £103.2 million.

Commenting on the Radial deal, Gymshark CEO Steve Hewitt said on professional social networking site LinkedIn: “It will game change the service proposition for our US community, in what is already our largest territory worldwide.

“So excited to see the impact this will have on our customer's experience."

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