UK online fashion retailer Boohoo defends treatment of suppliers
Company says it has invested much effort and resources into making positive changes
06 November 2023 - 16:09
byAgency staff
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
A woman poses with a smartphone showing the Boohoo app in front of the Boohoo logo on display in this illustration taken September 30, 2020. Picture: REUTERS/Dado Ruvic
London — British online fashion retailer Boohoo defended its treatment of suppliers on Monday after the BBC said it had seen evidence of staff pressuring suppliers to drive prices down, even after deals had been agreed.
BBC Television conducted an investigation with an undercover reporter, who worked for 10 weeks at Boohoo’s head office in Manchester as an administrative assistant.
“Like all businesses, we have experienced significant cost inflation over the last year, which we have absorbed in order to maintain affordable prices for customers,” a spokesperson for Boohoo said in a statement.
“As the cost of raw materials, freight and energy started to come down, the group asked its suppliers to reflect this in their pricing through discounts of between one and 10%, and we passed the savings onto customers,” the spokesperson said.
In 2020, Boohoo accepted all the recommendations of an independent review that found major failings in its supply chain in England after newspaper allegations about working conditions and low pay in factories in the Leicester area.
It pledged to fix the problems with its “Agenda for Change” programme.
“Boohoo has not shied away from dealing with the problems of the past and we have invested significant time, effort and resources into driving positive change across every aspect of our business and supply chain,” the spokesperson said.
Boohoo had made a number of improvements, including strengthening the ethical and compliance obligations on those wishing to supply Boohoo and regularly publishing a full list of approved global manufacturers.
“The action we’ve taken has already delivered significant change and we will continue to deliver on the commitments we’ve made,” the spokesperson said.
Boohoo and rival ASOS grew rapidly during the pandemic when high street rivals were shuttered by lockdowns.
But supply chain issues, higher product returns, competition from rivals such as Shein and rapidly rising living costs hit them hard.
Both Boohoo and ASOS have warned on the outlook in recent weeks.
Shares in Boohoo, 16.5% of which are owned by Mike Ashley’s Frasers, fell as much as 2.6% before paring losses to stand 0.8% lower at midmorning on Monday, extending a decline over the past year to 28%.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
UK online fashion retailer Boohoo defends treatment of suppliers
Company says it has invested much effort and resources into making positive changes
London — British online fashion retailer Boohoo defended its treatment of suppliers on Monday after the BBC said it had seen evidence of staff pressuring suppliers to drive prices down, even after deals had been agreed.
BBC Television conducted an investigation with an undercover reporter, who worked for 10 weeks at Boohoo’s head office in Manchester as an administrative assistant.
“Like all businesses, we have experienced significant cost inflation over the last year, which we have absorbed in order to maintain affordable prices for customers,” a spokesperson for Boohoo said in a statement.
“As the cost of raw materials, freight and energy started to come down, the group asked its suppliers to reflect this in their pricing through discounts of between one and 10%, and we passed the savings onto customers,” the spokesperson said.
In 2020, Boohoo accepted all the recommendations of an independent review that found major failings in its supply chain in England after newspaper allegations about working conditions and low pay in factories in the Leicester area.
It pledged to fix the problems with its “Agenda for Change” programme.
“Boohoo has not shied away from dealing with the problems of the past and we have invested significant time, effort and resources into driving positive change across every aspect of our business and supply chain,” the spokesperson said.
Boohoo had made a number of improvements, including strengthening the ethical and compliance obligations on those wishing to supply Boohoo and regularly publishing a full list of approved global manufacturers.
“The action we’ve taken has already delivered significant change and we will continue to deliver on the commitments we’ve made,” the spokesperson said.
Boohoo and rival ASOS grew rapidly during the pandemic when high street rivals were shuttered by lockdowns.
But supply chain issues, higher product returns, competition from rivals such as Shein and rapidly rising living costs hit them hard.
Both Boohoo and ASOS have warned on the outlook in recent weeks.
Shares in Boohoo, 16.5% of which are owned by Mike Ashley’s Frasers, fell as much as 2.6% before paring losses to stand 0.8% lower at midmorning on Monday, extending a decline over the past year to 28%.
Reuters
Shein buys Missguided brand from UK’s Frasers
Asos buys Topshop brand for £330m with eye on online push
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
UK retail’s terrible 24 hours as two top shops collapse
British online fashion retailer Boohoo bucks subdued industry trend
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.