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the process will be easier and less expensive. Garments that rely on current trends can be manufactured and delivered to customers while they’re still relevant – not when it’s too late! When thinking about the wage increase John Lewis and us will perhaps need to look at reducing our profit margin as the cost of production will be higher. We will just need to accept that our profits may be lower until we adjust to the wage increase.

Alternatively both retailers could increase their prices. John Lewis could most likely afford to do this as their target customer has a higher disposable income. At Boohoo we wouldn’t want to do this as our customers expect low prices.-

Plan 3 - Minimum Wage increase

It was made public on 17th March that in the October of 2015 the national minimum wage is due to be increasing to £6.70 from £6.50, this is due to effect 1.4 Million millionMillion workers. This increase may be a good thing for Boohoo and John Lewis employees however both retailers will need to put plans into place to deal with the extra wage costs. For an employee working an 8-hour day five times a week an employer will have to pay them an extra £8.

workers. This increase may be a good thing for Boohoo and John Lewis employees however both retailers will need to put plans into place to deal with the extra wage costs. For an employee working an 8-hour day five times a week an employer will have to pay them an extra £8.

John Lewis could begin improving the efficiency of their production and distribution channels to reduce employees needed, therefore balancing out the wage increase. For example if John Lewis’ manufacturing and packing process could become mainly robotic this would reduce the staff needed in this process, and in turn reduce costs. This will also affect us so we need to also improve our distribution channels in the same sort of way as John Lewis.

Lewis. However we would do not want to move production further afield as we see many benefits of producing in the UK. The reduced transportation costs will balance out the wage increase. Currently we produce around 50% of our garments in the United Kingdom however it is our aim to be producing 75% here in the UK by the end of 2017. This will mean that the majority of our distribution channel will be kept within the UK and therefore looking after the process will be easier and less expensive. Garments that rely on current trends can be manufactured and delivered to customers while they’re still relevant – not when it’s too late!