Pandora opened a distribution center in Mississauga, Ontario, Canada, reducing the jeweler’s exposure to U.S. tariffs, according to a March 31 press release.
Previously, online orders destined for Canada were handled from U.S. distribution centers, which had to pass through U.S. customs, per the release. Besides reducing tariff exposure, the new distribution facility will help Pandora cut delivery times by up to 50% and simplify the returns process.
Operated by GXO Logistics, the Mississauga facility is equipped to handle up to 12,500 online orders per day and is the first location to adopt Pandora’s new logistics setup, according to the release. The new model leverages a “pick-to-light” order system, which uses pinpoint lights to help employees locate which items to place in jewelry orders.
“The new model makes it easier to work with any logistics provider and delivers better stock availability and higher order accuracy,” per the release. Further, the technology “speeds up order processing and reduces the risk of errors.”
Shifting tariff policies under the Trump administration have shaken up supply chains, prompting retailers and shippers to accelerate mitigation strategies — including network adjustments — to manage trade uncertainty.
The distribution center opening comes as the trilateral review of the U.S.-Mexico-Canada Agreement looms — a critical trade policy for North America. The first joint review meeting is scheduled for July. Currently, goods compliant with the USMCA are exempt from the global 10% tariff installed by the Trump administration in February.
Canada currently accounts for 14.3% of U.S. trade, according to data from the U.S. Department of Commerce.
