Boohoo says delivery delays hurt demand as sales fall 13%

Boohoo has said delivery troubles are hurting demand as it saw a 13% drop in sales in 2022. The online fashion retailer, whose shares have fallen 55% in the past 12

months, said “extended delivery times compared to pre-pandemic levels [were] continuing to affect the proposition.” Sales in the UJ fell 13% at constant currencies to £401

million, the firm said, while sales in the US decline further – down 17% to £129 million. Turnover in 2023 is expected to fall by a further 12%. Boohoo CEO John Lyttle said

the dip in revenue "Reflects the normalisation of the channel shift online over the last twelve months.” It comes after Boohoo rival Asos last week said it had to bring

forward the cut-off date for Christmas orders because of ongoing disruption to delivery times caused by strikes. The beleaguered online retailer said it had embarked on a

£300 million package of “cost mitigation measures” as it battles raging inflation and dwindling consumer demand after it too reported a drop in sales. Office space will be

“rationalised” and three storage facilities including one in the UK will be closed, while 35 unprofitable brands will be withdrawn from the Asos site as part of the cost-cutting

plans. It comes on top of a previous decision to reduce staff costs by 10% through a series of layoffs. Boohoo also said today it had slashed its inventory by 27% in a bid

to control costs. The retailer began cancelling orders from suppliers amid falling demand for clothes, the Sunday Times reported last year. “As is the case across a retail

sector navigating uncertain demand, we are constantly reviewing our requirements,” a company spokesperson said.