Online fashion retailer Boohoo saw its revenue drop 11% during its key Christmas trading period due to delivery disruption and tough comparatives. Boohoo stuck to their annual guidance, forecasting a 12% decline in annual revenue and adjusted core earnings that are in line with market expectations. Let’s take a look at the factors that led to this decrease in sales.
Delivery Disruption
The Christmas trading period was disrupted by delivery issues, including delays caused by increased demand over the holiday season. This meant that customers were not receiving their orders as quickly as they would have liked, leading to dissatisfaction with the service and fewer orders being placed overall. The disruption also led to an increase in returns for Boohoo, which further impacted their sales figures.
Tough Comparatives
The Christmas trading period was disrupted by delivery issues, including delays caused by increased demand over the holiday season. This meant that customers were not receiving their orders as quickly as they would have liked, leading to dissatisfaction with the service and fewer orders being placed overall. The disruption also led to an increase in returns for Boohoo, which further impacted their sales figures.
Adapting Strategies
In order to counteract these issues, Boohoo has committed to investing more heavily in its customer service through improved delivery options and better aftercare services. These measures should help ensure that customers have a better experience when shopping with them – something which will be key if they are going to continue growing their business over the coming months.
