East Lancashire based fast fashion firm Boohoo has experienced a drop in sales over the past year, which a price comparison website says is due to the cost of living increasing.
The Burnley fashion company, who owns brands PrettyLittleThing and Nasty Gal, anticipates its full year revenue to be below market expectations.
In the last four months of 2022, when the sales should have soared during its key Christmas trading period, the company’s sales fell sharply due to delivery disruption and consumers wanting to spend less.
However, one area of fashion seems to be booming amid the cost-of-living crisis.
Tara Flynn, personal finance expert and co-founder of comparison site, Choosewisely.co.uk, said: “Boohoo was hugely popular during the pandemic, but this is a sign of the times.
"Consumers are experiencing price rises everywhere they turn, but wages aren’t keeping up. Shoppers are being forced to reconsider purchasing non-essential items of clothing.
“Last month, charity shops and second-hand clothing websites saw a rise in demand for pre-worn party clothes - a trend I predict will continue throughout the year.
"Buying second-hand clothes is becoming the norm as consumers seek a more sustainable lifestyle.”
eBay UK recently launched its campaign ‘Couple Up With Pre-Loved’ in partnership with Love Island, which saw a 1,600 per cent increase of searches in ‘pre-loved clothes’.
The British Heart Foundation shop in St James’s Street, Burnley, has seen a demand in shoppers looking to buy second-hand clothes over the last. “
We have been busier over the past year,” said a shop assistant. “I would imagine it is because of the cost-of-living crisis.”
A worker from a different charity shop in Burnley added: “We’ve definitely seen a demand, particularly since the cost of living has gone up.
“The thing is though, we aren’t getting as many donations now. We’ve been low on ladies winter clothing but more people are wanting to keep hold of their winter clothes because of how expensive things are now, less people can afford to buy themselves new clothes.”
Boohoo has been contacted for a comment.
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