North American tea merchant DAVIDsTEA (DTEA.V) on Wednesday said it has established a U.S. fulfillment platform in Chicago, positioning the company to "better serve American customers and drive profitable long-term growth in the U.S. market."
The company said it had begun fulfilling U.S. e-commerce orders through a strategic third-party logistics partner based in Chicago since late March. It added the new fulfillment platform complements DAVIDsTEA's warehouse and logistics operations in Montreal, "bringing inventory closer to U.S. customers, improving service levels, and strengthening the company's ability to grow profitably south of the border".
"Following the U.S. government's decision to eliminate the de minimis trade exemption, which allowed goods under US$800 to enter the country without paying duties or taxes, shipping orders from Canada into the United States became more complex and costly," said DAVIDsTEA in a statement. "The resulting customs friction created shipping delays, unpredictable delivery times, and a diminished consumer experience that contributed to a decline in U.S. e-commerce results."
Shares of the company were last seen up 1.25% at $0.81 on the TSX Venture Exchange.
Price: $0.81, Change: $+0.01, Percent Change: +1.25%