It’s encouraging to see Boohoo deliver on its promises to facilitate better standards in its supply chain.
Its reputation was in tatters last year after intense media scrutiny into dubious practices involving its suppliers and a general unethical approach to doing business.
“While there is an argument to say Boohoo should never have worked with suppliers that have poor standards, the retailer has at least admitted mistakes and taken steps to remedy the situation,” said AJ Bell’s Russ Mould.
“These actions have resulted in Boohoo upping its game with ESG (environmental, social and governance) issues, making a firm effort to stamp out modern slavery practices, and enabling better oversight of its supply chain.
“It is now working with fewer suppliers and has introduced new sustainability strategy for the manufacture of clothes, terms for suppliers and reducing its carbon footprint.
“Boohoo is by no means a perfect business following these actions. There is still the fundamental issue that its business model facilitates waste – low pricing points means customers often buy a dress, wear it once and then chuck it.
“There is also the issue that Boohoo faces the possibility of a US import ban relating to labour issues in its supply chain. The company previously said it wasn’t aware of an investigation, but from the market’s perspective this remains a live risk.
“Boohoo is having to make significant changes in the public eye, and it could become a model example of how the world will no longer accept substandard business practices, forcing change for the better.”