Due to a facility fire during Q3 and the complexity of its SKU mix, the retailer doesn’t expect to see benefits from its overhaul until 2027.

Levi’s network transition from an owned distribution center approach to a hybrid owned and third-party-run facility model has been tripped up again, but the company is optimistic about where the journey will end.

Following the closure of the Hebron site, Levi’s is focused on working through operational complexities at its Groveport, Ohio, facility, where the Kentucky location’s work was moved.

“I think 2027 is very reasonable and realistic to start seeing the benefits. And like I said, closing that Hebron facility was an important milestone to say we have the confidence that Groveport will fulfill our needs,” Gass said.

Still, this is the second time that Levi’s has had to push back its distribution network overhaul completion date. In January, the company said it would wrap up the move by the end of 2026 after it was forced to continue operations at the owned center in Hebron because the transition to Groveport was taking longer than expected.

The challenges of the continued delay have and may continue to cause shipping delays, order cancellations and increased costs, impacting Levi’s relationships with wholesale customers, according to the securities filing.

Other companies also working on distribution network changes include La-Z-Boy and AutoZone . Like Levi’s, La-Z-Boy is shrinking its footprint by reducing its total number of distribution facilities and the total mileage products travel. S. distribution center network .

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