Boycott Boohoo, or Hunt for Bargains? What Will Consumers Do?

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LONDON — After a rough few weeks, Boohoo’s share price is bouncing back, but the question remains whether its young consumer base will keep buying from the brand, which has been dogged by allegations of poor labor practices and unfair pay at one of its supplier’s factories in Leicester, England.

It remains to be seen whether the scandal will bring forth any meaningful change, or encourage consumers to stop before they shop, and think about the clothing brand, or retailer’s, ethics. Or will the controversy just be forgotten in a few months’ time, with boohoo.com’s young clientele once again turning to the retailer for cheap alternatives to the trends they spot on social media?

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What is Lost Stock? Introducing the mystery clothes box scheme where you get half-price fashion from high street brands

Mystery boxes are the new way to shop: Getty Images/iStockphoto
Mystery boxes are the new way to shop: Getty Images/iStockphoto

With many of us not feeling quite so in need of a regular fashion fix during lockdown, the knock-on effects have been huge.

Millions of Bangladeshi garment factory workers have been left out of work by the coronavirus pandemic, after major fashion brands cancelled orders en masse to the tune of $3.5bn.

“We do not want charity, we just want companies to pay their bills and respect their contracts,” factory owner Mostafiz Uddin told The Independent.

“We have bought the raw materials, we have produced the garments, we have invested the money and we will not be able to survive. We will literally die. It will be impossible for us to handle this. Our workers will be suffering a lot. I have no words to express what it will do to us.”

Some 135,000 tonnes of new clothes

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German online fashion retailer Zalando raises full year guidance

(Reuters) – German online fashion retailer Zalando SE increased its full year earnings guidance on Wednesday, as the coronavirus pandemic prompts more people to shop online.

The company said it expects to grow gross merchandise volume (GMV) by 20% to 25% and revenue by 15% to 20% in 2020, up from its guidance from May 6 when the company had expected GMV and revenue growth of 10% to 20%.

Europe’s biggest online-only fashion retailer said it expects adjusted earnings before interest and tax (EBIT) of 250-300 million euros for the full year.

The company said that based on preliminary figures for the second quarter, it has grown GMV by 32% to 34% to 2.67-2.71 billion euros and group revenues by 26% to 28% to 2.01-2.05 billion euros, adding it expects a second quarter adjusted EBIT in the range of 200-220 million euros.

The company’s financial results for the second quarter

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Fast-Fashion Retailer Quiz Launches Probe Into Leicester Factory

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LONDON — Yet another British fast-fashion retailer, Quiz, has launched a probe into one of its factories in Leicester, England, a city that is quickly making a name as the country’s sweatshop capital.

Quiz, which is headquartered in Glasgow, Scotland, and is quoted on the London Stock Exchange, said Monday it is investigating “an alleged instance of non-compliance with national living wage requirements” in a factory that makes some of its products.

It has also cut ties with the supplier working with the factory in Leicester, a city that remains in lockdown due to a spike in the number of COVID-19 cases.

Shares in Quiz, which were down 5 percent at 6.41 pounds in late-morning trading on Monday, closed up 3.2 percent at 6.97 pounds.

The investigation follows an undercover sting published by The Times of London on Saturday, which revealed that workers

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