Ssense's U.S. Expansion Signals the End of Centralized Canadian Fulfillment
AI-generated image · Bay Street Wire
By shifting inventory to a Northeastern U.S. warehouse, the luxury retailer is attempting to bypass tariff volatility that contributed to its recent insolvency.
As reported by BetaKit, Montréal-based luxury platform Ssense is planning to open a large fulfillment center in the Northeastern United States early next year. The move is designed to mitigate the impact of U.S. tariff policies on the company's largest market.
Tariffs were a contributing factor to Ssense's insolvency last year. The company is currently recovering from a restructuring plan that prevented a forced sale by lenders; earlier this year, co-founders Firas, Bassel, and Rami Atallah bought the brand back and cut more than 200 jobs to maintain viability.
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**Opinion:** Ssense's move is a loud signal that the era of centralized Canadian fulfillment for U.S. luxury markets is dead. In the face of looming tariff volatility, the 'ship-from-home' model is no longer sustainable for high-ticket retail.
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The shift was catalyzed by the Trump administration's removal of the *de minimis* exception last year, which previously waived duties on imports under $800. BetaKit illustrates the impact with a $990 cardigan: while shipping directly from Ssense currently incurs $97 in duties, importing that same item to a U.S. warehouse at a hypothetical wholesale price of $300 would reduce the tariff to roughly $30.
According to The New York Times, which Ssense confirmed to BetaKit, a third-party logistics company will manage the new facility. Ssense will keep its corporate headquarters and its Montréal fulfillment center to serve international markets.
The pivot comes as trade tensions escalate. BetaKit reports that the U.S. recently enacted sweeping 50 percent tariffs after Canada exited trade negotiations. While the Canadian government has introduced an aid package to navigate the remainder of Donald Trump's term, Trump has called for Canadian companies operating in the U.S. to relocate their headquarters south.