US firm Hooker Furnishings is opening a new warehouse in Vietnam, part of a broader logistics overhaul. The move is part of the company’s strategy to shift more inventory storage closer to its suppliers, reducing US safety stock needs, and improving responsiveness to shifting tariff policies, company leaders have told an earnings call.
Key details
- The Vietnam warehouse will shorten replenishment cycles from six months to 4–6 weeks.
- It enables container mixing and better product flow, reducing the need for large U.S. inventories.
- Hooker expects annualised savings of US$4 million to US$5.7 million from the Savannah exit starting in FY2027.
- The facility supports the company’s shift away from low-margin, bulky accent items previously stored in the US.
- Vietnam will serve as a strategic buffer amid tariff uncertainty and supply chain disruptions–the company says that the Vietnam storage can essentially be used to regulate the flow of goods imported to the US around tariff announcements and changing policy.