Boohoo delays and cancels orders - report
Boohoo has reportedly cancelled and postponed orders that were due from a number of suppliers as sales continue to be affected by consumer caution and rising prices due to soaring supply chain costs.
The Sunday Times reported that clothing suppliers in Leicester are feeling the biggest impact from the cancellations.
A Boohoo spokesman told the newspaper: “As is the case across a retail sector currently navigating uncertain demand, we are constantly reviewing our requirements.”
Boohoo is unlikely to be the only fashion firm doing this. A similar thing happened across the sector in 2020 as lockdowns due to the Covid crisis meant that normal fashion shopping patterns were severely disrupted.
While online specialists benefited to a certain extent as physical stores were closed, shopping tastes changed. Dresses and more formal clothing — for instance — were abandoned in favour of categories like loungewear. It all meant that seasonal buying plans for SS20 were turned on their head.
As for today, one supplier also told the newspaper that “Boohoo has cancelled a load of orders. We are just here to do the fast stuff and when they don’t need it, they just stop it in its tracks”.
While at the current circumstances might not be quite as extreme as during lockdowns, the company is having to deal with some exceptional issues with the hangover from the pandemic and the Russia-Ukraine war severely affecting supply chains and pushing up costs fast. As well as this, it's also having to deal with intense competition from major rival Shein.
This has led to an 85% drop in the company’s share price over the past year. It means the multibrand business currently has a value of 'only' just over half a billion pounds, well below the billions it was worth 12 months ago.
The company will be reporting its interim results on Wednesday.
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