Boohoo and Wilko cancelling orders with suppliers as sales slow down

Fast fashion giant Boohoo and discount retailer Wilko are cancelling and deferring orders from suppliers amid slowing sales and soaring costs, according to a report from The Times.

According to the publication, clothing suppliers in Leicester, who are under pressure themselves from surging energy bills, feel they are bearing the brunt of cancellations.

“Boohoo has cancelled a load of orders. We are just here to do the fast stuff and when they don’t need it, they just stop it in its tracks,” one supplier told The Times.

To read more ecommerce and supply chain news, subscribe to the free daily Charged newsletter

A Boohoo spokesman added: “As is the case across a retail sector currently navigating uncertain demand, we are constantly reviewing our requirements.”

In addition, it is understood that Wilko unilaterally deferred payments to suppliers amid a squeeze on its cash flow. The retailer informed suppliers that payments due between 11 September and 8 October would be made the following month.

Wilko has also adjusted its terms and conditions so suppliers will be paid in a minimum of 60 days.

The discount chain declined to confirm what terms it previously adhered to, but blamed the changes on cost inflation, shipment delays and the impact from store closures on the day of the Queen’s funeral.

CompaniesEcommerceIndustryNewsSupply Chain


Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.