British online fashion retailer Boohoo defended its supplier treatment following a recent BBC investigation that revealed allegations of staff pressuring suppliers to lower prices even after agreements had been made. The BBC conducted an in-depth probe, with an undercover reporter working for 10 weeks at Boohoo’s Manchester head office as an administrative assistant.
“Like all businesses, we have experienced significant cost inflation over the last year, which we have absorbed in order to maintain affordable prices for customers,” a spokesperson for Boohoo said in a statement.
“As the cost of raw materials, freight and energy started to come down, the Group asked its suppliers to reflect this in their pricing through discounts of between 1 and 10 per cent, and we passed the savings onto customers,” the spokesperson added.
In 2020, an independent review highlighted shortcomings in Boohoo’s supply chain in England, specifically concerning working conditions and low pay in Leicester factories.
The company responded with its “Agenda for Change” program, pledging to rectify these issues. The spokesperson emphasised that Boohoo had invested significant time, effort, and resources to drive positive change throughout its business and supply chain.
“Boohoo has not shied away from dealing with the problems of the past and we have invested significant time, effort and resource into driving positive change across every aspect of our business and supply chain,” the spokesperson said.
Boohoo implemented various changes, including reinforcing ethical and compliance obligations for suppliers wishing to collaborate with the brand and regularly publishing a comprehensive list of approved global manufacturers.
“The action we’ve taken has already delivered significant change and we will continue to deliver on the commitments we’ve made,” the spokesperson said.
