The Manchester-based business used to be a stock market darling thanks to its shockingly fast sales growth. At its height, shares would fall if the company did anything less than double sales – was that all?
The phenomenal growth was driven by Boohoo’s ability to deliver on-trend clothing faster and cheaper than anybody else — even Zara.
This year has really done for the business. Longer freight times are deadly for fast fashion players like Boohoo. As the name suggests, shoppers want their items now — waiting a few weeks won’t do.
Higher costs are also a turn off. With inflation running rampant, businesses like Boohoo are being forced to swallow the higher costs.
Boohoo insists that these factors are temporary and should ease in the New Year. Even if they do, it won’t be an easy ride. While Boohoo has been cleaning house, a new challenger has emerged in the form of China’s Shein. It can deliver tops that are — you guessed it — cheaper and faster than rivals.
