Boohoo latest online retailer to see drop in sales
By Laura Enfield | 20th January 2023
Fashion giant Boohoo is battling a sharp drop in sales as the e-commerce boom recedes .
The fast-fashion retailer saw sales slump 11% year on year to £637million in the four months to December 31. And it expects revenues to decline by about 12% for the full year.
Founded in 2006 as an online only retailer, Boohoo Group has slowly amassed an empire and has around 19 million customers worldwide.
It owns brandsPrettyLittleThing, Nasty Gal, Debenhams, Karen Millen, Coast, Warehouse, Oasis and former Arcadia brands Burton, Dorothy Perkins and Wallis.
It is not the only online retailer to get bad news this January, with Very Group, ASOS and Not on the High Street all reporting a drop in demand as shoppers retun to the high street.
John Lyttle, CEO of Boohoo Group, said the dip in revenue "reflects the normalisation of the channel shift online over the last twelve months."
He said: "Looking ahead, whilst the demand outlook is uncertain due to macro-economic factors, cost inflation is expected to begin to moderate in the second half of the year.
"We have reduced inventory by 27% year on year and with this focus on careful inventory management, strong cost control and cash management, we will continue to drive operational and cost efficiency across the business."
Last week, Boohoo announced it was consulting on 100 jobs across its ecommerce, buying and design departments at its Soho office.
The group also closed its Wellingborough warehouse this month with some of the 420 staff affected transferred to the retailer's other facilities.
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