• Saturday, April 20, 2024

Business

Boohoo to probe price disparity

Boohoo founder Mahmud Kamani (Photo: Jerritt Clark/Getty Images).

By: RadhakrishnaNS

ONLINE retailer Boohoo is facing price disparities across a range of its brands when a same item of clothing is being sold at a different price at its different fashions labels.

The discrepancy was found out by BBC, when a same coat had different prices at Dorothy Perkins and Coast – both owned by Boohoo. At Coast it was over-priced at £34.

At its other brands such as Oasis and Warehouse, price disparities are also there. In response, Boohoo said the “miscommunication was not intentional”.

“All Boohoo group brands work independently, and so this miscommunication was not intentional as teams are not privy to what’s being bought and sold across the other group brands,” a spokeswoman for Boohoo said.

“Our internal investigation continues and we will be re-pricing all the crossover stock to be aligned.”

Catherine Erdly, founder of The Resilient Retail Club consultancy, and a former senior merchandiser at Coast, said: “If all Boohoo are going to do is buy the same stuff and slap different prices on it then it’s destroying that brand’s identity.”

In another instance of clothing being priced differently, a long “luxe” padded coat in the colour mushroom was originally sold for £89 at Oasis and £65 at Dorothy Perkins.

The same coat in khaki was in the sale for £30 in Warehouse and £66.75 in Coast until the matter was brought to Boohoo’s attention by the BBC. Now both are priced at £18.

Boohoo operates a number of different brands after buying up businesses when their owners fell into administration.

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