Online fashion specialist Boohoo has cancelled orders and variety store group Wilko is delaying supplier payments as disrupted trading conditions take a toll.
Boohoo has deferred as well as cancelled some orders with suppliers because the high cost of living is affecting shopper demand. Wilko blamed factors such as cost inflation and the impact of closing stores for the Queen’s funeral for the need to change supplier payment periods, The Sunday Times reported.
One Boohoo supplier in Leicester told the newspaper: “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.”
A Boohoo spokesman said: “As is the case across a retail sector currently navigating uncertain demand, we are constantly reviewing our requirements.” The retailer posts interim results later this week.
Wilko has informed suppliers that bills due to be paid between September 11 and October 8 would now be made the following month, and has changed its minimum payment period to 60 days.
Wilko has also recently switched rental payments from a quarterly to monthly basis to conserve cash.
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