Boohoo continues to undermine supply chain and workers despite promising to pay suppliers a fair price with realistic timelines.
The fast fashion retailer launched a “Agenda for Change” after allegations of its workers in Leicester earned less than minimum wage and were in unsafe working conditions.
However, BBC undercover reporter Emma Lowther found that working at Boohoo is “intense” and saw staff under “constant pressure to drive prices lower and lower.”
The fashion brand also promised to pay suppliers fairly but the investigation found price cuts even after orders had been agreed.
At one time, Lowther was told process a 5% cut on more than 400 orders that had already been agreed, saving Boohoo thousands of pounds.
One supplier was angry about a 10% discount being applied which it said it hadn’t agreed to.
The supplier said it would lose money because it would be working under cost and asked for the discount to be removed urgently. Lowther doesn’t know how the dispute was resolved.
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In an attempt to keep up with rapidly changing fashion trends, the retailer decreased timescales with suppliers from its orders from 10 to six weeks.
One of the managers managers admitted this would be “a real challenge” for suppliers.
“Even with the UK, we’ve definitely not been seeing that sort of lead time from them… It’s going to be really hard,” the manager added.
After a week’s grace, Boohoo introduced a 5% price cut for every week the supplier’s order was late.
Boohoo’s lawyers said the company’s lead times are not unrealistic or unfair, and it is standard practice to have late delivery penalties which are discussed with suppliers.
The retailer told the Independent: “We work in a constructive way with our suppliers to deliver great value for our customers.
Our suppliers pay at least national minimum wage where they operate.
“The majority of our suppliers have worked with the Boohoo group for a number of years, something that would not be possible if the work was not profitable.”
