''Inflation increases so consumers start to spend less''
As inflation is an external factor and can't be helped by the business Boohoo have no control over it. Because of inflation people may not be able to afford to spend on things such as clothes more regularly and tend to go for more vital things. If customers aren't putting money into Boohoo, Boohoo can't spend on assets within the business to help it work, such as suppliers and delivery. People who shop at Boohoo will turn to other places to get their clothes as it is a cheaper and alternative option. As inflation increase wages will also increase, workers will ask for a pay-rise in compensation and by the end everything will get out of hand. if the Uk has a higher inflation than other countries (such as China, where Boohoo import some products from) the UK prices will rise above the imported prices.
What are some of the challenges Boohoo might face?