Logistics firm Clipper has signed a lease for a giant warehouse on Europa Way, Tinsley, where it plans to employ more than 200.
A spokesman said they were unable to name clients.
But The Star understands fast fashion giant Boohoo is taking space in the huge building which has room for 24,000 pallets.
The news will be welcomed in Sheffield, not just for the jobs but Clipper’s vote of confidence in the city.
The company employs 1,200 at an even larger warehouse nearby which it runs for PrettyLittleThing - a division of Boohoo.
A Clipper spokeswoman confirmed they had taken a three-year lease and said they wanted more properties.
She added: “Europa Way is expected to employ more than 200 people. It will be a multi-user site which is not dedicated to one client.
“This deal is part of a growth strategy for Clipper. We are on the look out for more sites.”
Clive Betts, MP for Sheffield South East, welcomed the jobs but wanted reassurances on Covid measures in the warehouse. And, if it were Boohoo, that its sourcing had improved.
Last summer an investigation was launched after 28 cases were reported at the PLT warehouse. Boohoo promised to improve conditions in the supply chain after revelations about poor pay and conditions particularly in Leicester where the group sources about 40 per cent of products.
Mr Betts added: “Of course I welcome the jobs, unemployment is too high in Sheffield.
“But I want reassurances on both issues and I hope lessons have been learned and are applied in the new warehouse.”
Boohoo did not comment.
In 2018, PrettyLittleThing signed a 10-year deal with Clipper Logistics to occupy one of the biggest warehouses in the country, on Shepcote Lane, Tinsley, with the promise of 1,200 jobs. The two firms agreed to share the multi-million pound costs of fitting it out with racking and automation.
At the time, Richard Cowlishaw, HR director at Clipper, said it would employ 600-900 ‘core’ staff and up to 1,200 at busy periods like Christmas and during promotions such as Black Friday. The building has space for extra floors that could accommodate a further 800 workers.