// Boohoo has been cancelling and deferring orders from suppliers as demand for clothing wanes amid the cost-of-living crisis
// Boohoo posted its first ever UK sales drop earlier this year
Boohoo has been cancelling and deferring orders from suppliers as the cost-of-living crisis dampens demand for fast fashion.
One of the etailer’s suppliers in Leicester told The Sunday Times: “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.”
A Boohoo spokesman told the newspaper: “As is the case across a retail sector currently navigating uncertain demand, we are constantly reviewing our requirements.”
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The uncertainty is likely to hit suppliers, who are facing soaring energy costs.
Boohoo posted its first ever UK sales drop in its quarter to 31 May. UK sales fell 1% while overall sales plunged 8%.
Since then, fellow etailer Asos warned that its sales in August were weaker than expected, which it said “reflected the impact of accelerating inflationary pressures on consumers and a slow start to autumn/winter shopping”.
Boohoo’s share price has plunged 85% over the past year, as hedge funds bet against the fast fashion giant, which is one of the most shorted stocks on the UK market.
The retailer is set to unveil its interim results on Wednesday.
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