Big-name retailers have defended selling clothes for £5 or less, saying their ability to sell clothes so cheaply is down to business models. MPs investigating the impact of so-called "fast fashion" asked the firms how they could justify such low prices. Primark's spokesman Paul Lister said the firm spent nothing on advertising and had tight profit margins. Representatives from brands including Boohoo, Misguided, Asos, Burberry and Marks & Spencer also gave evidence. Carol Kane, joint CEO of online fashion house Boohoo, was asked how the company could sell dresses for as little as £5 when the minimum wage was £7.83. She said this only applied to a small number of dresses intentionally sold at a loss, to drive more traffic to the site. Earlier this year, the firm was strongly criticised for burning £30m ($40m) of stock. It admitted destroying the unsold clothes, accessories and perfume instead of selling them off cheaply, in order to protect the brand's exclusivity and value.
