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Published
Mar 16, 2021
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Boohoo keeps customer loyalty in face of supplier issues

Published
Mar 16, 2021

Boohoo Group’s shares have been on a roller coaster ride in the last year. The pandemic-linked crash was followed by a steep climb then both ups and downs since ‘sweatshop conditions’ news reports emerged last summer.


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But the firm’s customers have stayed remarkably loyal and the brand remains a strong one today. Analysts at German Bank Berenberg have looked at the company and have said that the brand’s Instagram following has continued to grow, even with all the bad PR.

And they noted that there has been “no particular change” in purchase intent among 16- to 34-year-olds, The Times reported.

Berenberg retail analyst Michael Benedict, said: “We think there are no particular signs that the negative publicity has resulted in a meaningful decline in brand sentiment among Boohoo’s addressable customer base.”

He expects the company to be able to continue its “sector-leading growth”. And there’s no denying that it has seen remarkable sales growth in the past year, even as stories about issues in its UK-based supply chain were emerging.

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