UK fast fashion retailer facing falling sales

• Boohoo is a fast fashion retailer targeting teens based in the UK.
• The company increasingly faces competition from the rise of Shein.
• The company is listed in the Alternative Investment Market (AIM) sub-market of the London Stock Exchange.

British fast fashion retailer Boohoo has reported a 19% fall in UK sales over the six months to August for 2023.

The group revenue for the company did not fare any better as the company saw its six months revenue fall by 17% from the same period last year. The online retailer enjoyed rising sales during the pandemic when brick and mortar stores were forced to close for many months.

Shein, the ultra-fast fashion retailer from China has been offering cheap garments online while also heavily using social media to promote their clothes. This can be a dampening factor for the sales forecast for Boohoo as well as  secondhand clothing sites such as Depop.

Amidst the cost of living crisis, the group is looking to the US for growth potential after opening a US distribution centre that will speed up deliveries to homes from more than 10 days to about 3 days.