In some big retail news, athleisure brand Lululemon Athletica announced its plans to close its Washington state distribution center at the end of the year. The closing will result in 128 employees being laid off, according to a WARN notice filed with the state’s Employment Security Department on April 18.

The closing of the Sumner, Washington, center is part of the retailer’s business optimization plan, and layoffs will begin on June 21. A Lululemon spokesperson shared that some employees will be retained and relocated to other facilities, including its newer distribution center in Los Angeles, according to multiple sources.

Consumer Spending Slowing

The news comes after Lululemon recently reported slowing demand for its brand in North America, following inconsistent consumer spending trends, according to Reuters. The news outlet says excessive inventory levels at sporting retailers have resulted in lower orders for sportswear and apparel firms.

“Lululemon’s weaker-than-expected forecast underscores the broader challenges retailers are facing, as persistent price pressures drive shoppers to pull back on discretionary purchases and trade down to cheaper brands,” according to Insider Intelligence Analyst Rachel Wolff.

The lease for Lululemon’s 150,000-sq.-ft. Sumner distribution center ends in July of 2025, a regulatory filing revealed. The retailer’s lease for a roughly 1.26 million-sq.-ft. distribution center in Ontario, California expires in 2038, according to its annual filing. It owns an additional facility in Groveport, Ohio, and leases spaces throughout Canada, the U.S., and Australia.