// Boohoo Group asks suppliers for 10% discount on all outstanding orders for the second time in two months
// The online retailer is in the process of cutting costs across the business following weaker sales
Boohoo Group has asked for a 10% discount on orders from some of its suppliers, for the second time in two months, Drapers reports.
In an email sent to some suppliers, Boohoo blamed “significant decreases in freight, cotton and polyester prices year on year” for rebasing its cost prices “to reflect these improvements”.
“[In] previous years we absorbed a significant cost inflation across our operations but, as a strategic partner to Boohoo Group, we need to ensure that the savings now being experienced across the industry are in your cost prices.”
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Drapers understands that the products involved are either in production or have already been shipped.
The move comes after the fashion group requested discounts on delivered and undelivered clothing last month as it looks to reduce costs in its supply chain.
While Boohoo Group declined to comment, a source close to the situation told Drapers the business continues to be on the front foot on reducing its cost base.
The Manchester-headquartered group is also understood to be trying to capture deflation in the supply chain to ensure the benefit can be passed on to customers.
Last week, the fashion giant’s shareholders staged a revolt over its proposed executive bonuses.
Boohoo Group was braced for opposition to its remuneration report after advisory firms recommended investors reject it.
On 22 June, more than 32% of shareholders voted against the report at its annual general meeting.
Chief executive John Lyttle enjoyed £650,000 bonus last year despite the group racking up losses of over £90m.
Boohoo is currently in the midst of a leadership battle at Revolution Beauty, where it is the largest shareholder, as it looks to oust the brand’s leadership team.
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