Leonie Barrie's apparel and textile industry blog - from just-style.com

Diesel hijacked by shock tactics

Tue, 07 Feb 2012 19:03:00 GMT

Efforts to draw attention to the rights of women garment workers have taken a somewhat sinister turn after a hoax website was set up purporting to launch a new campaign by Italian fashion label Diesel.

Slick graphics on Diesel for Women appear to mark the latest instalment in the brand's Successful Living campaign. "Welcome to Misopolis, a brave new world for female factory workers," it says, adding: "To make a free lifestyle possible for young women in emerging markets, [Diesel] will help them conquer a key life challenge: the right to safe abortion."

The bogus site is part of a crusade by non-profit groups Women on Waves and Women on Web, who want women around the world to have access to safe medical abortion. But they also say they are campaigning to expose the violation of workers' rights in the garment industry - and the reluctance of the fashion industry in general and Diesel in particular, in tackling the issue.

Their claims are outlined here and appear to focus on a report that "proved Diesel buys from suppliers that use the 'sumangali scheme,'" where girls are promised a lump sum at the end of a three-year period. This lump sum is actually part of their wage, which is below the legal minimum. The campaigners also note most female workers in the garment industry live in countries where abortion is illegal.

Not surprisingly, Diesel has reacted with fury and is threatening legal action.

Indeed, it's one thing for consumers to drive change, as was the case recently when protestors managed to get Versace and Giorgio Armani to ban sandblasting after bombarding their social networking sites with complaints. But another altogether to hijack a company's image and reputation.

And do shock tactics like this really work - or merely serve to undermine the message? Yes they might be attention-grabbing, but all-in-all they're also a worrying development.

A mixed bag for retailers in January

Mon, 06 Feb 2012 18:32:00 GMT

For many retailers January is the quietest month of the year as shoppers tighten their belts after Christmas and stores try to clear unsold inventories. But post-holiday discounts helped many US retailers lift their sales in January, according to monthly figures released last week.

Overall results, however, were mixed as consumers continued to shop cautiously amid the struggling economy. And for apparel retailers there was the added challenge of warm weather curbing sales of winter coats, boots and other winter basics, as well as tougher year-ago comparisons.

Groups representing Cambodian garment workers are this week hoping to get a fair wage commitment from retailers and brands who source from the country. A two-day "people's tribunal" is taking place in Phnom Penh to investigate factory pay and conditions - and follows a spate of mass faintings in the sector, as well as a series of strikes. It hopes to draw attention to the concerns of those employed in the garment sector.

The World Trade Organization, meanwhile, has approved a request from the European Union to temporarily lift duties on 75 products from Pakistan - the majority of which are textiles, apparel, and footwear. The two-year tariff waiver is intended to help the country recover from massive floods in 2010, and measures will be in effect until 31 December 2013.

Domestic market expansion, new materials development and the transfer of production bases are all priorities under the 12th five-year plan for the domestic textile industry, released by mainland China's ministry of industry and information technology. The government predicts the export value of all textile products will reach US$300m by the end of 2015, with an annual growth of 7.5% from 2011.

Slower global economic growth and ample supplies could place downward pressure on cotton prices, after the International Cotton Advisory Board (ICAC) cut its global demand estimates for the fibre. The latest forecast released this week by the inter-governmental group sees world cotton demand for the 2012-13 season down by more than 510,000 tonnes from earlier forecasts.

And for this year's annual management briefing on apparel industry issues to watch in the year ahead, just-style asked leading executives for their feedback on the challenges and opportunities likely to emerge in 2012. Their insight provides a fascinating overview of the state of the sector today. Global economic uncertainty, swings in commodity prices, labour shortages and rising costs, especially in China, all add up to a worrying year. But e-commerce and growing spending power in emerging markets, as well as faster cycle times and stronger relationships across the supply chain, might offer some respite in these volatile times.

M&S breathes sigh of relief at Plassat appointment

Wed, 01 Feb 2012 14:36:00 GMT

Marks and Spencer will have breathed a sigh of relief following the appointment of Georges Plassat as CEO of Carrefour.

Speaking to just-style, Shore Capital analyst Clive Black said that there were murmurs that Marc Bolland was in the running to replace Lars Olofsson at Carrefour.

Indeed his international experience combined with his experience across food and general merchandise might have made him a good fit.

However, with the difficulties facing Carrefour, combined with Bolland being just over a year into his three-year strategy at M&S, the world's second largest retailer was unable to lure Bolland away.

JC Penney revamp a breath of fresh air?

Mon, 30 Jan 2012 13:30:00 GMT

Given his success at building Apple's stores into the world's most successful retail operation, hopes have been high that Ron Johnson would also work his magic at JC Penney after joining as its new CEO in the autumn. And last week the wait was over, as he set out his new vision for the department store chain.

His strategy for tomorrow's shopping experience is wrapped under the banner 'In Praise of Fresh Air,' and will see nearly four years of gradual transformation of the retailer's entire look, pricing ethos and the way it sells its products. Plans include putting an end to non-stop promotions, which will be replaced by an everyday low pricing model. There will also be in-store boutiques to mimic a more traditional high street, a new designer partnership with Nanette Lepore, and a new logo.

Will it be enough? Repeating Apple's success in the crowded environment of a department store is no easy task. It's a huge challenge - but one that recognises just how badly JC Penney needs to up its game.

Change of a different kind is underway at The Bonmarché chain, owned by collapsed fashion retail group Peacocks, which has been sold to private equity company Sun European Partners. Some 1,400 jobs will be lost with the closure of about 160 stores, leaving around 230 Bonmarché shops in the UK. Administrators also say there has been "huge interest" from potential buyers for the Peacocks discount fashion chain.

But bad news continues to weigh on the UK retail sector after new figures showed sales fell in January, as shoppers reined in their spending after taking advantage of early discounting last month. The latest monthly CBI Distributive Trades Survey found just 8% of clothing retailers saw growth in the first two weeks in January, while 48% of footwear retailers said they saw a decline.

Even fashion stalwart H&M blamed "one of the toughest years for a long time" after it posted a 15.3% drop in full-year profits after holding its prices in the face of rising costs. Sales were up 1.4%, but comparable sales dropped 1%. Europe's second-largest clothing retailer said the higher cost of making its clothes added up to a "challenging" situation in the countries it sources from. More markdowns in its stores also hurt margins.

The global clothes sourcing bandwagon is forever looking for the next hotspot, especially as nearly two decades of apparel cost deflation come to an end and worries continue to escalate about raw material and labour costs, capacity issues and the overall competitiveness of China. But is Bangladesh ready to step into the role of sourcing country of choice? A new report says its garment exports could triple within a decade - but only if a number of challenges are overcome.

Retail sales paint too rosy a picture

Mon, 23 Jan 2012 14:45:00 GMT

Heavy discounting by clothing and footwear stores in the run-up to Christmas helped UK retail sales edge up in December, according to official figures released last week. Sales volumes rose 0.6% between November and December, the Office for National Statistics (ONS) said, and were 2.6% higher than December last year.

Sales volumes at textile, clothing and footwear stores increased 6.3% from December 2010, when demand was impacted by harsh winter weather. By value, sales in the sector were 8.2% higher.

Analysts, however, warn the figures were skewed by a late rush to the shops at the end of the month - as well easy comparisons with a poor, snow-hit December last year. Shoppers remain reluctant to spend and retailers competing hard on price are seeing their margins suffer as a result.

Indeed, the difficult underlying trading conditions claimed new casualties last week, with value clothing chain Peacocks and the UK arm of children's clothing retailer Pumpkin Patch both calling in the administrators.

Peacocks is the biggest British retailer to enter administration since Woolworths collapsed in December 2008. The business, which operates 611 stores, continues to trade while a buyer is sought, but 249 jobs have been axed at its head office.

Peacocks and Pumpkin Patch join the ranks of La Senza, Barratts Priceless and D2, which have all been placed in administration in the first few weeks of 2012.

While many high street stores are struggling, luxury brands such as Burberry and Mulberry are bucking the trend. Both reported healthy growth over the Christmas period, helped by strong demand at their stores in Asia and from tourists visiting their shops in the West. Likewise, at the other end of the spectrum, discount fashion chain Primark and online fashion retailer Asos also emerged among the winners during the festive season.

In the US, meanwhile, reports suggest the right mix of strong promotions, lean inventories and an emphasis on value helped Christmas retail sales beat forecasts - rising 4.1% on last year to US$471.5bn. Apparel sales performed "extremely well", the National Retail Federation (NRF) said, adding that while the retail industry is set to grow at a faster rate than many other industries in 2012, this growth will be slower than last year.

The Chinese New Year - which begins today (23 January) - is traditionally a time when labour shortages become commonplace as workers head home during the holiday season. To try to prevent this, clothing and textile manufacturers in key provinces say they are raising wages to try to attract and retain workers.

Clothing sales driven by Christmas promotions

Mon, 16 Jan 2012 15:20:00 GMT

The UK's biggest clothing retailer, Marks & Spencer, has admitted that heavy discounting in the run-up to Christmas has eaten into profit margins - and that it is now eyeing extra cost savings to try to make up the shortfall.

M&S's like-for-like clothing sales rose 1.1% in the three months to 31 December, with its overall performance lifted 2.4% thanks to a stronger than expected performance in its food business. But the retailer insisted it was not discounting in a "distressed" fashion, and that the move had been a tactical one.

Indeed, earlier and deeper promotions were endemic among UK retailers over the festive period according to new figures released last week - helping to lift like-for-like sales values by 2.2% over the previous year. The British Retail Consortium (BRC) also noted that shop prices grew at their slowest pace for 16 months during December.

The victor in the supermarket price war was Sainsbury's, the UK's number three player, which hailed a "record breaking" Christmas period. Its general merchandise and clothing sales outpaced its food business, lifting sales by 2.1% on a like-for-like basis. But shares in market leader Tesco plunged after it admitted to being outpaced by its rivals and warned that UK profits could fall in the coming year. Its UK like-for-like sales were down 1.3% in the six weeks to 7 January.

In other news, purchases by the Chinese government are absorbing a large portion of the 2011/12 global cotton crop, with efforts to rebuild the national reserve likely to lead to a recovery in world stocks. The inter-governmental group the International Cotton Advisory Committee (ICAC), and the US Department of Agriculture (USDA) both believe global cotton stocks could rebound after two seasons of relatively tight reserves.

And sportswear giant Nike said it "commends" one of its Indonesian suppliers after it agreed to reimburse workers more than US$1m in unpaid overtime. The PT Nikomas Gemilang IY plant shoe factory will pay back wages to around 4,500 workers, as well as offer training programmes for the local management team and set up a task force to address grievances.

The settlement comes seven months after manufacturers and brands including Adidas, Nike and Puma signed a pact with textile, clothing and footwear unions that strengthens rights for workers in Indonesian sportswear factories.

New Year, same old issues

Mon, 09 Jan 2012 18:47:00 GMT

Welcome to a new year here at just-style...and one that has resumed with the same old questions over the state of the US apparel retail market. The all-important December sales results released last week shed some light on Christmas trading, with upscale and value-focused retailers the bright spots in a sector that saw weak-to-modest growth overall.

According to one index, same-store sales growth levelled out at 3.6% in December, up modestly from the 3.2% gain the year before, helped by good weather in most parts of the country, and a last-minute rush by bargain hunters. But the holiday results are seen as indicative of trends likely to continue into the New Year.

One of the year's first casualties of poor holiday sales is US department store retailer Sears, which intends to close up to 120 shops after booking a 5.2% decline in comparable quarter-to-date sales - including lower apparel sales at its Kmart stores. It also said it intends to focus on its better performing stores going forward.

And Liz Claiborne Inc has stepped into 2012 with a new name following the sale of its Liz Claiborne brands late last year. The company is rebranding as Fifth & Pacific Companies as it focuses on growing its three global lifestyle brands: Juicy Couture, Kate Spade and Lucky Brand. The change is due to come into effect in May, and reflects the company's reach from New York to global markets.

There has also been the traditional New Year business shuffle on the other side of the Atlantic, with the collapse of UK denim retailer D2 Jeans, and a move by troubled lingerie retailer La Senza to close more than half of its UK stores. And more than 1,600 people have lost their jobs after administrators failed to find a buyer for the Barratts Priceless footwear concessions business.

The UK's largest outdoor clothing and equipment retailer, Blacks Leisure Group, also said it will go into administration as part of plans to sell the business. The so-called pre-pack arrangement allows potential buyers to cherry-pick the company's best assets, but leave its costly distribution warehouse and head office, as well as shed unwanted shops from its 300-store estate.

Optimism, pessimism and nudity - welcome to 2012

Wed, 04 Jan 2012 14:23:00 GMT

While industry watchers wait for the US' top retailers to release their December sales tomorrow, across the pond, UK retailers began revealing their Christmas performance, with John Lewis and Next both posting positive results.

US retailers are particularly optimistic, with the NRF forecasting a 3.8% sales rise in mid-December. Despite John Lewis and Next both posting gains, analysts remain concerned about the health of the UK high street.

Shore Captial analyst Clive Black said that Next's "mellow" end of year trading shows the "ongoing challenges facing the UK consumer", and this "must have a potentially negative read across for other apparel retailers on the high street".

From across the pond, to across the Channel, La Redoute has become mired in a twitter storm today, as an image advertising children's beach wear, inadvertently included a nude man frolicking in the water behind them.

The retailer fixed the image and apologised on Twitter within around two hours of it being initally reported. Like most Twitter storms, there has been a lot of noise, but it's likely to die down quickly.

When many companies take days to rectify these viral complaints (see Topman last year), La Redoute should be applauded for moving quickly to fix the image and apologise to customers who might have been offended.

Happy Holidays from all at just-style.com

Fri, 23 Dec 2011 17:25:00 GMT

The team here at just-style.com is now taking a well-earned break as the office shuts down for the annual Christmas and New Year celebrations.

We'll be back at our desks on Tuesday 3rd January, recharged and ready to keep you in touch with all the breaking developments in the style industry in 2012.

Until then, we'd like to wish all our readers a very happy Christmas and New Year, and thank you for your continued support.

Retailers' hopes pinned on Christmas shopping countdown

Mon, 19 Dec 2011 14:28:00 GMT

As we come into the final shopping days before Christmas, there have been some distinctive differences in the mood of the US and the UK retail sectors.

While both countries recorded rising November sales, US industry watchers saw this as a sign of good things to come. Indeed, Consumer Growth Partners has gone as far as to say that US consumer spending over the holidays is set to beat 2007 pre-recession levels.

However, on the other side of the Atlantic, the UK also recorded positive November sales figures but, rather than this being welcomed as signs of a turnaround, industry watchers argued that the high promotional levels being experienced before Christmas will mean that there will be no incentive for consumers to spend in the post-Christmas sales.

In other UK news, retail guru Mary Portas released her High Street Review on Tuesday. Her 28-step plan to revive troubled high streets received mixed reviews. With a significant element of her review calling for dis-incentives to shop in out-of-town developments, which she blames for the decline in high street shopping, the most scathing responses naturally came from those involved in these centres.

Verdict Research analyst Maureen Hinton argued that these developments are merely responding to consumer desires.

"We want the convenience of large out-of-town supermarkets with plentiful, free parking and a full range of products," she said. "These locations would not survive if we did not shop at them and taxing them more heavily will be a further tax on shoppers rather than retailers and landlords."

Meanwhile, the latest data to come out of the US is forecasting another drop in global demand for cotton as ongoing economic uncertainty and a shift to man-made alternatives continue to weigh on future purchases of the fibre. The US Department of Agriculture is forecasting that demand will drop by 2.6% to 111.3m bales in the 2011/12 season, down on the previous projection of 114.3m bales.

While there is set to be a surplus this year, a number of brands are working to ensure future supplies through their membership of the Better Cotton Initiative. Brands like Levi Strauss and Marks and Spencer are working with their supply chains to promote more sustainably-grown cotton that provides a "middle way" for farmers who might not be able to implement more rigid schemes like Fairtrade or organic certification programmes. just-style met representatives from some of the brands last week to find out more about this scheme.

WORLD: Cotton demand seen falling amid shaky economy

Spotlight on...A better way to grow cotton

Pre-Christmas discounting damages brands

Thu, 15 Dec 2011 14:56:00 GMT

The traditional Boxing Day sales frenzy seems to have begun earlier this year, with desperate UK retailers trying to grab as many sales as possible before consumers tighten their belts again when the post-Christmas hangover kicks in.

Walking the high streets, some retailers seem to have skipped their Christmas windows and gone straight into January markdowns. Speaking to Supergroup chief executive Julian Dunkerton about the heavy promotional landscape yesterday, he said: "I think they're making a big mistake", in launching their sales before Christmas.

"There is a lot of discounting going on and we don't do that. If you have got it right, sales are OK to good. But I don't think it is brilliant for anybody."

Unseasonably warm weather has slowed the sale of traditional winter products like coats, scarves and gloves, which may have given some retailers the heebie jeebies that the entire Christmas period is at risk. However, discounting too soon means that retailers will see margins hit during a time of year when consumers ordinarily expect, and tend to be willing to pay full price.

Speaking about retailers going into sales before Christmas, Dunkerton said: "People don't want to buy gifts on sale. It perceptually doesn't feel right."

Certainly, as a consumer, over the past couple of years, there are certain brands I've learned that if I wait, they will invariably go on sale. And with websites promoting when different retailers are planning to go on sale, savvy shoppers may hold off their final Christmas shopping in the hope of getting a bargain. Unfortunately, this changing mindset is unfortunately unlikely to disappear when the economy eventually picks up.

Planet Retail's global research director Natalie Berg said that retailers like Debenhams and Gap are cutting prices by up to 40% in a bid to get customers into stores, a move which is likely to hit January sales. "With all of this pre-Christmas discounting, there is no incentive for consumers to hold out as they have done in the past. This will certainly lead to retail margin erosion and dilute the appeal of the January sales for many shoppers. Combined with the fact that there will be no pending VAT rise to act as a stimulus to buy bigger-ticket items, it is looking like wallets will remain firmly shut once Christmas has ended," she said.

For retailers and brands looking for good news, it doesn't seem that there is any on the horizon yet.

UK retail sector under pressure

Mon, 12 Dec 2011 18:26:00 GMT

In the same week that figures showed UK retailers achieved their weakest sales performance for six months in November, news also broke that thousands of jobs are at risk after several clothing and footwear chains were put up for sale.

Nearly 4,000 jobs are threatened after the owner of the Barratts and Priceless Shoes stores collapsed into administration after a downturn in trading. And Blacks Leisure, the UK's largest outdoor clothing and equipment retailer, has appealed for a buyer for the firm or one of its brands. Irisa plans to close a number of stores as part of its restructuring efforts, and rumours are circulating that discount fashion chain Peacocks may close some 200 stores.

While a mild autumn has hurt sales of cold-weather items, the sector is also being buffeted by the ongoing eurozone crisis, high inflation and stagnant wages - all of which will continue to put pressure on consumers.

Supermarket giant Tesco has also admitted that clothing sales were "difficult" during its third quarter as it struggled to move winter lines due to warmer weather. The comments came as the retailer recorded another quarter of falling revenues in the UK and a "sharp" slowdown in its operations in Asia.

And struggling US women's wear chain Talbots has received an unsolicited takeover bid from one of its leading shareholders, which is concerned by the company's "rapidly deteriorating performance." The offer from private equity firm Sycamore Partners came after Talbots said it was seeking a successor for president and CEO Trudy Sullivan. Less than week before it had revealed plans to cut 9% of its corporate headcount and close stores after third quarter loss widened to $22m on a 6.6% drop in sales.

While another victim of the tough retail environment, Pacific Sunwear of California, is to close up to 200 under-performing stores after securing new credit agreements designed to help turn around the ailing business. The announcement came as the US company posted wider third quarter losses and falling sales.

And India has backtracked on its decision to allow more foreign investment in the country's multi-brand retail sector. However, it is thought the government still plans to relax single-brand foreign direct ownership rules, which would allow brands like Marks & Spencer, Ikea, Gap and Armani to own their operations in the country.

Dance into 2012 with Tangerine Tango

Fri, 09 Dec 2011 17:36:00 GMT

Now that another rollercoaster of a year is nearly over, you might want to know that 'Honeysuckle' helped us to face everyday troubles with verve and vigour. And next year, 'Tangerine Tango,' a spirited reddish orange, will help us on our way by continuing to provide the energy boost we need to recharge and move forward.

At least, that's according to colour specialist Pantone, which has decided that Pantone 17-1463 Tangerine Tango, "a vivacious, enticing hue," is the colour of the year for 2012.

"Sophisticated but at the same time dramatic and seductive, Tangerine Tango is an orange with a lot of depth to it," says Leatrice Eiseman, executive director of the Pantone Color Institute. "Reminiscent of the radiant shadings of a sunset, Tangerine Tango marries the vivaciousness and adrenaline rush of red with the friendliness and warmth of yellow, to form a high-visibility, magnetic hue that emanates heat and energy."

A provocative attention-getter, the colour is especially appealing in men's and women's fashion - and has already been picked up by designers Tommy Hilfiger, Nanette Lepore, Cynthia Steffe by Shaun Kearney, Elie Tahari and Adrienne Vittadini in their spring collections. A fun, lively take on a traditional autumnal hue, Pantone is also betting that Tangerine Tango will carry through to autumn lines as well.

In case earlier forecasts passed you by, here's a quick reminder of the colourful highlights of the last decade or so:

Pantone 18-2120 Honeysuckle (2011)
Pantone 15-5519 Turquoise (2010)
Pantone 14-0848 Mimosa (2009)
Pantone 18-3943 Blue Iris (2008)
Pantone 19-1557 Chili Pepper (2007)
Pantone 13-1106 Sand Dollar (2006)
Pantone 15-5217 Blue Turquoise (2005)
Pantone 17-1456 Tigerlily (2004)
Pantone 14-4811 Aqua Sky (2003)
Pantone 19-1664 True Red (2002)
Pantone 17-2031 Fuchsia Rose (2001)
Pantone 15-4020 Cerulean (2000)

Topshop steps into Australia

Thu, 08 Dec 2011 13:31:00 GMT

Topshop and Topman opened their first Australian store today in Melbourne to a very warm welcome.

Looking at the Australian press, the opening was something of an event, with as many as 250 people queuing overnight to be the first to shop the UK fast fashion brand.

Topshop's international expansion drive (US, Canada) has come at a time when, at least in its UK home market, the brand has lost some of its lustre, with the company reporting a drop in full-year pre-tax profit late last month. Indeed, hype has cooled from the glory days in the mid-noughties when Kate Moss began designing her range for the chain.

However, internationally it seems that many consumers can't get enough of the brand. Hosting friends in London (from my home town of Melbourne), many visits would mostly revolve around hitting Oxford St and buying up as much Topshop, Zara or H&M as their baggage allowances offered.

Topshop enters Australia at an interesting time. With the country largely avoiding the recession that has impacted the much of the developed world, the country's retailers are only now starting to feel the pinch, with the strong Australian dollar driving consumers online amid an environment of declining consumer confidence.

The local retailers I spoke to in my Australian Management Briefing in early November about the entry of Zara, Gap, Topshop and Uniqlo into the market were encouraged by their presence. Indeed, the CEOs of Myer and Sportsgirl see a halo effect from Zara stores being positioned near theirs. They also said that the openings were increasing footfall more generally in these shopping areas.

We can only hope that Topshop/Topman's Jam Factory Neighbour, Target, and the rest of the Chapel St shopping strip will experience the same benefits.

Black Friday boosted by bargains

Mon, 05 Dec 2011 13:24:00 GMT

US retailers posted a mixed bag of results in November, with earlier opening hours and Black Friday bargains helping to drive consumer traffic over the Thanksgiving weekend for some, but tougher comparisons with the year-ago period and weaker sales during the rest of the month weighing on others.

Black Friday is the biggest shopping day of the year and the traditional start to the holiday shopping season, so November retail sales are watched closely for first signs of how the holiday season is likely to pan out. During the month, same-store sales growth slowed to 3.3% - but traffic and spending over the Thanksgiving weekend reached historic highs of $52.4bn according to a survey by the National Retail Federation.

After years of speculation and fierce debate, India looks set to ease restrictions on foreign investment in its booming retail sector. Business organisations and multinationals have welcomed the decision, but politicians remain divided on the issue.

Meanwhile, US retailer Marks & Spencer has provided an update on the progress of its Plan A ethical and sustainability programme - including its "Ethical Excellence" award for a denim factory in Bangladesh and a woven fabrics unit in Indonesia. Separately, the firm said it will begin selling a cashmere coat made from recycled fibres, which it claims is the UK's first closed loop clothing product from a major retailer.

Work has also begun on one of the Caribbean's largest industrial parks, which is being built in Haiti as part of an international project designed to help the country recover from the devastating earthquake that hit nearly two years ago. The initiative will generate thousands of jobs for apparel workers after South Korean garment maker Sae-A Trading promised to invest $70m in new facilities there.

But the US government has also admitted that a scheme introduced to help stimulate apparel exports from Haiti has been used by just one company this year.

And what started out as a challenge back in July by environmental pressure group Greenpeace to try to persuade global fashion brands and retailers to eliminate the discharge of hazardous chemicals from their supply chains and products has been gaining momentum ever since. So much so that Adidas, C&A, H&M, Li Ning, Nike and Puma now describe their efforts as a "game-changing collaboration."

No respite for UK retailers

Tue, 29 Nov 2011 14:53:00 GMT

While Christmas is the highlight of the year for most retailers, this year it will be even more important, with shoppers set to curtail their spending again in the new year.

With the CBI seeing sales decline more quickly for clothing retailers in November, Frances Coulson, the president of insolvency specialist R3 believes that the next few months will be critical for businesses.

"The next few months will be crucial for retailers who need to build up their reserves before the New Year, as this is when consumers will curtail their spending once again," said Coulson.

According to R3's Business Distress Index, the retail sector is experiencing significantly higher signs of distress than any other sector, with retail businesses more likely than any other to be concerned about their debt levels. It also found that six in ten retailers were experiencing a decline in profit and that almost half had seen a drop in sales volume.

"Things are far from being back to normal on the high street," it said. "The difficult international economic situation, the government's austerity measures, high inflation and stagnant wages will continue to put pressure on consumers."

Just another Manic Monday?

Mon, 28 Nov 2011 17:32:00 GMT

As US retailers give thanks for the jump in sales over Thanksgiving weekend, with Black Friday and Cyber Monday now firmly etched into the US shopping calendar, international retailers are now hoping to import these into the UK.

While UK consumers lack the holiday (and subsequent food hangover) ahead of the national day of skiving that is Cyber Monday, for many, this weekend has offered the last pay-check that many will receive in the run up to Christmas.

And with the UK consumer looking increasingly pressed, and the retail sector looking increasingly bleak, Many retailers on this side of the Atlantic have jumped on the bandwagon, with Oasis, Gap, Whistles, Debenhams, Asos, All Saints, among others all hosting flash sales today.

With the Interactive Media in Retail Group forecasting that UK consumers will spend GBP7.75bn online in the five-week period before Christmas, if retailers look online, they may not need to write off Christmas just yet, albeit at a discount.

Indeed, these flash sales reflect the increasing propensity for the UK consumer to shop at a discount. Indeed, the CEO of online discount retailer BrandAlley UK, Rob Feldmann, said: "The current economic climate with increasing inflationary pressures has undoubtedly constrained the retail sector, however, as this survey clearly illustrates, consumers are not necessarily spending less but are definitely becoming more savvy in their spending. Discount buying is increasingly becoming the norm and people expect to find the best offers online."

According to research from A.T. Kearney, the 28 November and 5 December will be a crucial time before Christmas, when consumers have the most money available, and with online shopping becoming increasingly sophisticated, online retailers will be well-placed to reap a larger share of what consumers spend this Christmas - and more if weather conditions mimic those of 2009 or 2010.

While discounting is a double edged sword (high sales/lower margin), the opportunity this period presents unlikely to be repeated in the near-term with consumer confidence likely to remain bleak into the New Year.

"As far as the general retail situation in the UK is concerned, one man's gain is another man's loss, and much of the successes of online retailers will come at the expense of the high street," said AT Kearney's Emmanuel Hembert. "UK consumers are seeing their real incomes squeezed due to pay freezes, growing unemployment and rising living costs, and will remain cautious with their spending in the months to come."

International opportunities gather speed

Tue, 29 Nov 2011 17:21:00 GMT

US specialty clothing retailer Gap Inc last week opened its first flagship store in Hong Kong as part of ongoing plans to expand the international reach of its brands - and aims to triple its stores in the Greater China region by the end of its next financial year.

The move coincides with the firm's first anniversary in China, where it says sales have so far been "very positive." But it recently admitted to challenges as well, with aggressive marketing key to standing out in an increasingly crowded market.

The retailer also says it is seeing progress in efforts to improve its women's wear lines."I'm feeling better about what I'm seeing coming in the spring," CEO Glenn Murphy said, adding: "I'm feeling better about 2012 when it comes to Gap."

A wave of foreign investment could soon be on the cards in India's retail sector after the government approved plans to allow overseas companies to own a 51% stake in multi-brand chains. India has long been held up as a key market for multinational retailers, but expansion into the country has been hampered by restrictions on foreign ownership.

Meanwhile, Marks & Spencer's return to Paris after ten years was somewhat overshadowed by concerns closer to home: namely a continuing row with suppliers over plans to make them contribute to its store revamps, and rumours that Kate Bostock, executive director of general merchandise, is in advanced talks with rivals to leave the company.

Trading conditions in the UK remain "extremely challenging" according to new figures produced last week, with high streets in October seeing the sharpest drop in footfall for nearly a year. Rising supply costs and unseasonable warm weather are also weighing on clothing sales - with Arcadia Group, owner of the Topshop, BHS, and Dorothy Perkins brands, planning to close some 250 stores over the next few years after booking a 38% slump in full-year profit.

A new online tool has been launched to help brands, factories and labour groups move towards the provision of a living wage for garment workers in global supply chains. The FWF Wage Ladder enables firms to compare the wages paid at any factory against a range of wage benchmarks.

And the minimum wage for Cambodia's garment workers is to rise by $5 a month from January 2012 in a bid to help workers meet basic needs like health care as well as reduce the likelihood of strikes.

But the Bangladesh government is withholding permission for a US-sponsored survey to check if child and forced labour is employed in the country's apparel sector - even though the local garment industry has no objection.

Paris offers no escape for M&S' domestic woes

Thu, 24 Nov 2011 14:35:00 GMT

For all that Marks & Spencer had to be proud of today (24 November), it would be easy to imagine that chief executive Marc Bolland might be feeling a bit Down and Out in Paris and London, after its international success was dampened by concerns closer to home.

Speaking about its return to France with the opening of a store in Paris, Bolland described a "fashion riot", with police coming to check on the queues of up to 1,000 people wanting to shop its new Champs-Élysées store. Today should have been about celebrating the retailer's re-entry into the market a decade after it left.

Instead, the opening was overshadowed by rumours that M&S' executive director of general merchandise, Kate Bostock is in advanced talks with rivals to leave the company. A testy Bolland told one journalist to go back and listen to the tape when he asked again for more information about the highly regarded executive's plans. Perhaps tellingly, neither Bolland or Bostock issued an outright denial of the talks, with Bostock only saying that: "I am very disappointed at pieces in the press today. I am very proud of the team."

If that wasn't enough, questions also focused on rumblings about the retailer's plans to make suppliers contribute to its store revamp programme amid ongoing reports that some are refusing to pay. Bolland was able to be firmer in his denials of animosity, saying: "Don't create something that is not there."

Black Friday begins on Thursday

Wed, 23 Nov 2011 19:03:00 GMT

Next to the Saturday before Christmas, Black Friday - traditionally the day after Thanksgiving - ranks as the most important shopping day of the season. And a new survey from Deloitte suggests holiday shoppers won't let the side down this year, with 51% planning to be either online or in stores this weekend.

But this year, more than ever before, it seems retailers are leaving nothing to chance when it comes to persuading shoppers to part with their dollars. In an increasingly competitive holiday shopping season the traditional Black Friday pre-dawn openings are a thing of the past, as stores race to be the first to open their doors. Retailers including Best Buy, Kohl's, Macy's and Target will all be open at midnight for the first time, while Walmart plans to go one better by opening two hours earlier, at 10pm on Thanksgiving Day.

If Black Friday is seen as a good gauge of consumer sentiment, then what does this mean for the rest of the holiday season? Earlier openings, hefty markdowns and other promotional deals may lead to higher sales, but the resulting hit to profits suggests retailers may have little festive cheer to look forward to.