A violent increase in the price of cotton, direct labour wage increases in low cost countries, inflationary wage increases in manufacturing giants, and a tripling in the cost of shipment. All of these factors and more have affected the cost elements of the supply chain. In this first-edition report, just-style has created six supply chain cost models to illustrate the differences between the supply price from different countries and the effect of changes to those cost elements.
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A winning combination of warmer weather, an earlier Easter, new spring fashions and an improving economy have helped a number of US apparel retailers to higher same-store sales for March. Data released last week showed Target, Macy's, Limited Brands and Gap all managed to book strong gains during the month.
US: Retailers' March 2012 sales roundup
US: Gap books "solid" sales gains in March
Meanwhile, US department store operator JCPenney Company is axing around 10% of the staff at its corporate headquarters in Plano, Texas as part of an ongoing transformation of its business under new CEO Ron Johnson. The retailer said it expects to achieve around $200m in savings at its headquarters, where 650 jobs will go. It is also closing its customer call centre in Pittsburgh, Pennsylvania.
US: JC Penney cuts 650 headquarters jobs
And US retail giant Wal-Mart is hoping a new five-year initiative to empower 60,000 women working at its supplier factories in India, Bangladesh, China and Central America will also lead to higher quality products and lower prices. The Women in Factories programme will be rolled out to 150 factories and will teach “critical life skills” such as hygiene, health and safety.
US: Wal-Mart launches Women in Factories programme
An inter-governmental group has warned that efforts by the Chinese government to build the country's cotton stockpiles have led to "significant uncertainty" that could weigh on the global cotton market for years. The International Cotton Advisory Council (ICAC) estimates China's cotton imports will be 4.2m tons during the season that ends on 31 July, a rise of 61% on the previous year.
WORLD: China's cotton stockpiles lead to "uncertainty"
China also comes in for criticism in an annual report from the US Trade Representative's office – and along with India, Argentina and Brazil is among countries listed as obstructing US apparel and textile exports around the world. The 2012 National Trade Estimate Report sets out the major foreign barriers faced by US companies.
US: Report identifies barriers to apparel and textile trade
And, with increasing numbers of apparel and footwear brands, retailers and manufacturers weighed down by so-called "audit fatigue", steps are being taken to work towards a common platform that will enable firms to share data and reduce the number of audits carried out across the supply chain. The Global Apparel, Footwear and Textile Initiative (GAFTI) brings together retailers, brands, mills and factories to try to reduce this compliance complexity.
GAFTI gets tough on audit fatigue
Until next time...
Leonie Barrie
Managing Editor
Web: http://www.just-style.com
Email: editor@just-style.com
Twitter: http://twitter.com/juststyle
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