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Fast fashion retailer Boohoo has had ‘multiple failures’ in its supply chain, the review found | Instant News

(LR) Models Paris Hilton, Jasmine Tookes, Romee Strijd, Elsa Hosk, and Josephine Skriver attend the boohoo x All That Glitters Launch Party on November 7, 2019 in Los Angeles, California.

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Boohoo shares surged nearly 17% on Friday, after an independent review of allegations about working conditions and low wages found “numerous failures” in the supply chain of fashion retailer Leicester.

But an investigation found that Boohoo had shown they were taking steps to fix the problem.

Boo hoo
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which owns brands including Pretty Little Thing and Nasty Gal, commissioned a review in July, led by top attorney Alison Levitt QC, following a report at Sunday Times.

The newspaper alleges that workers at a factory in Leicester, central England, which sells clothes for Boohoo, are paid just £ 3.50 per hour. The minimum wage for those aged 25 and over in the UK is £ 8.72.

“Ms Levitt is satisfied that Boohoo is not deliberately allowing poor conditions and low pay to exist in its supply chain, it is not deliberately taking advantage of them and its business model is not based on the exploitation of workers in Leicester,” Boohoo said in a statement.

Boohoo shares were up nearly 17% in morning trade in London, before paring the gain to trade at 9.66%.

Read: Amazon dropped products online retailer Boohoo amid allegations of poor working conditions and no COVID-19 protection

Several online retailers stopped selling Boohoo products from their websites after publication Sunday Times reports, including Amazon
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which holds shares of fashion retailers and related brands as a result of historic agreements.

UK clothing retailer Next

also removed all previously sold Boohoo and Pretty Little Thing items from all of its websites, while Berlin-based online clothing store Zalando

removed all products of Boohoo and its subsidiaries, and ceased all new business with the company.

“The findings and recommendations of the Independent Review are clear,” said Boohoo Chief Executive John Lyttle.

“The Group realizes that to produce real change in Leicester’s textile industry, it is clearer, stronger, and measurable action needed in addition to what the Group does, “he added.

The review stated that “if Boohoo is willing to take a different approach to how Boohoo views and interacts with Leicester’s supply chain, it has the power to be a tremendous force for good.”

It recommends a series of improvements to Boohoo’s corporate governance, compliance and monitoring processes.

In response, Boohoo outlined six steps to improve governance, including appointing a new independent director to its board, making supply chain compliance a mandatory item on every board meeting agenda, and establishing additional board committees to enable it to better identify and monitor risk. it’s faced as a business.

The company says it will also ensure related supply chain compliance COVID-19.

Read: Retail sales in the UK are returning to pre-coronavirus levels. This is why it may not last long

AJ Bell investment director Russ Mold told Boohoo’s changes in the process can result in higher costs, which in turn can be passed on to the customer.

“Boohoo’s main attraction is its relatively low price, so management should consider whether the company will bear some of the extra costs to avoid alienating customers or whether it has a price-power miracle. The latter is when a business has confidence that it can raise prices without causing demand to fall, ”Mold said.

Analysts at Hargreaves Lansdown said Boohoo’s pledge to strengthen governance will also help Boohoo restore, and most importantly, maintain its reputation.

“It is not clear how the scandal will affect sales but Boohoo’s performance remains to be supported by its highly proficient digital platform and agile test and repeat manufacturing model,” they said.


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Whole Foods founder blames the obesity crisis on ‘ignorance,’ not food prices – ‘We’ve opened shop in a poor area’ | Instant News

The founder of Whole Foods just said a mouthful.

John Mackey humiliated the world at large New York Times interview that hit Thursday, blaming “bad decisions” – and not health food prices – for feeding the obesity epidemic, which in turn is making the coronavirus pandemic worse, he said.

“I don’t think there’s an access problem,” said Mackey – though Morgan Stanley notes last year found that Whole Foods’ prices were 15% higher than typical grocery store prices, driven by a 30% premium on protein, such as meat. (Therefore mocking the “Whole Paycheck” moniker some shoppers have given to high-end stores that specialize in organic produce.) And about 2.3 million Americans live in the food desert more than a mile away from supermarkets and don’t own cars, according to federal data.

“It’s not about access and more about people making bad choices, mostly out of ignorance.”

– John Mackey

In contrast, Mackey said people don’t take personal responsibility for eating well. “We have opened shops in poor areas,” he said. “It’s not about access and more about people making bad choices, mostly out of ignorance.”

He also highlighted the correlation between the emerging obesity crisis over the last few decades, and the novel coronavirus pandemic which infected at least 31.92 million people and killed 977,357 globally.

“The whole world is getting fat, it’s just that Americans are on the cutting edge. We are getting fat, and we are getting sicker, “he said. “I mean, there is a very high correlation between obesity and death from Covid. And one of the reasons the United States has more problems with Covid is because of comorbidities like diabetes, heart disease, high blood pressure, they are higher in the US ”

Preliminary research Into the coronavirus that causes COVID-19 has found evidence to suggest that obese people are more likely to catch the virus, be hospitalized because of it and die from it than those who are not obese. Indeed, more than seven in 10 American adults aged 20 and over are overweight or obese, according to the CDC, and the US COVID-19 caseload and definite death toll is much higher than any other country in the world. But keep in mind that there are also many other factors that may play a role in the spread of the virus, including adherence to social distancing guidelines, which we are still studying.

Mackey also noted that “we are all food addicts”, and that “Whole Foods cannot solve all the problems of the country or all the problems of the world.”

“The whole world is getting fatter … We are getting fatter, and we are getting sicker.”

– John Mackey

“People don’t realize the fact that they have a food addiction and need to do whatever it takes,” he said. “People need to be wiser about their food choices.”

Mackey also praised Amazon
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which he praised for helping Whole Foods better cope with the disruption of this year’s closing pandemic. The online retailer bought Whole Foods for $ 13.4 billion in 2017, and Mackey says Whole Foods’ online sales have tripled since the coronavirus turned the global economy upside down. “Can we do that before Amazon? No way, “he said. “From the first day we joined them, they encouraged us to make the changes we needed to be more effective at online delivery.”

He also said that Whole Foods had been a “good employer” for its 100,000 workers, and had tried to keep them safe during the crisis. This happened when several workers spoke out against the company’s attendance policy during the pandemic; the points system that had gotten tighter since it was recently restored, said the Business Insider employee.

Related:The founder and CEO of Whole Foods fell in love with Amazon

Mackey also discusses why he doesn’t support the federal minimum wage. “A high minimum wage of $ 15 makes a lot of sense in certain cities. It doesn’t make sense in another place where the average salary is much lower and the average cost of living is much lower, ”he said.

But he refused to consider anything to do with President Trump. “I’m not going there,” he said. “We are very divided on politics, whatever I say will anger 50% of the population. So, my own personal politics, I keep it to myself. I am definitely not going to talk about President Trump. “

Check out the full interview here.


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A new budget strategy in Australia as a virus bite | Instant News

SYDNEY – The Australian government has ditched its old fiscal strategy of chasing budget surpluses, replacing it with the aim of pushing the unemployment rate back below 6% over time, while warning that austerity measures and higher taxes will now halt the economic recovery.

The revised fiscal strategy, which will be fully outlined in the government budget by October 6, will support demand and job creation, Treasurer Josh Frydenberg said in a speech to business leaders Thursday.

“Our previous fiscal strategy has served us well … but now it will hurt the economy and it is unrealistic to target a surplus than expected going forward, given what we are going to do in terms of significant tax increases and big cuts for essential services,” he said .

The resource-rich economy contracted by a record 7% in the second quarter of the first due to the lockdown to contain Covid-19. Mr Frydenberg said the economic damage would last, eroding budgets for some time.

The government will allow so-called automatic stabilizers to work freely to support the economy, with the second phase of the plan set to provide fiscal support, including through tax measures, to grow private sector jobs and investment, Frydenberg said.

The unemployment rate fell to 6.8% in August, but economists expect it to increase over time as the economic recession has resulted in the permanent closure of some companies and employers remain reluctant to hire.

Mr. Frydenberg did not say when he expected the unemployment rate to continue below 6%.

Send a letter to James Glynn at [email protected]


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The German Ifo Index rose for a fifth month | Instant News

– German business sentiment rose for the fifth consecutive month in September

– The company’s assessment of their current situation has improved

– The company hopes are a bit more optimistic

German business sentiment rose in September, improving for the fifth straight month, the Ifo Institute said Thursday.

“The German economy is stable despite rising infection rates,” said Ifo.

The Ifo business climate index came in at 93.4 points in September from a downwardly revised 92.5 points in August. Economists surveyed by The Wall Street Journal had it at 93.5 points.

The company’s assessment of their current situation rose, rising to 89.2 points in September from 87.9 points in August. Expectations also jumped slightly higher, with the component rising to 97.7 points from a revised 97.2 points in August, Ifo said.

The Ifo Index is based on a poll of about 9,000 companies in manufacturing, services, trading and construction.

In the manufacturing sector, the business climate indicator has once again jumped significantly, rising to minus 0.2 from minus 5.6 in August as companies’ assessment of their current situation improved and prospects for the coming months were again more optimistic.

In contrast, in the service sector, the index fell after rising four times in a row. Driven by less optimistic expectations, the index fell to 6.9 in September from 7.7 points a month earlier.

The business climate was significantly sunny in trade, said Ifo. The trading index rose to 0.3 points from minus 4.8 points in August.

In construction, indicators of the business climate have continued to improve and have reached their highest level since March. The index rose to 3.3 points in September from 0.0 the previous month.

Send a letter to Maria Martinez at [email protected]


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Italy has fewer cases of COVID-19 because Britain ‘loves freedom’, said Boris Johnson | Instant News

British Prime Minister Boris Johnson announced to lawmakers on Tuesday about the government’s new restrictions related to the COVID-19 pandemic.

Jessica Taylor / Agence France-Presse / Getty Images

British Prime Minister Boris Johnson stated that Britain has a worse infection rate than Italy and Germany because it is a “freedom-loving country.”

Johnson was questioned by British lawmakers in the House of Commons on Tuesday after exposing tougher restrictions in an effort to contain the spread of the coronavirus that causes COVID-19. The steps, incl Pub and restaurant curfew at 10pm and stricter rules on the use of masks, came into effect as Britain recorded 4,926 new cases on Tuesday and a further 6,178 on Wednesday – the highest daily figure in four months.

In In contrast, Italy – The worst country in Europe at the start of the pandemic – reported 1,392 new daily cases on Tuesday, and Germany recorded 1,821, according to state health officials. The two countries have so far avoided imposing new restrictions despite surging cases in other European countries, including Spain.

Ben Bradshaw, a lawmaker from the opposition Labor party, asked Johnson if Germany and Italy’s testing and tracing services were behind their relative success in containing the virus this time around.

“Does he think that the reason Germany and Italy have much lower rates of COVID than us, with lives going on more or less normally, may be because they have both locally run and publicly run testing and tracing services that actually work?” he said in the British Parliament on Tuesday.

In response, the Prime Minister disagreed and said the “constant attacks” on the National Health Service’s testing and tracking services were “damaging and unnecessary.”

“And there are actually important differences between our country and many other countries around the world, and that is our country is a country that loves freedom.”

Read: From lockdowns to Brexit, the UK economy is headed for a tough winter

“If you look at the history of this country over the last 300 years, almost every progress from free speech to democracy has come from this country. It is very difficult to require residents of the UK uniformly to comply with the guidelines in the necessary manner. “


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