Blog: New Year, bad news
Leonie Barrie | 5 January 2009
We’re less than a week into the New Year and already there’s another slew of bad news from the high street – confirming fears that disastrous holiday sales will spark a domino effect of store closures and bankruptcy filings over the next couple of months.
Maternity wear retailer Blooming Marvellous was this weekend reported to be on the verge of collapse, and Adams Childrenswear today shut 111 stores with the loss of around 850 jobs, just five days after calling in the administrators.
The next fortnight will also see trading updates from the likes of Marks & Spencer, Next, Debenhams, Ted Baker and JD Sports, and there are fears that the recent stampede of shoppers taking advantage of unprecedented discounts still won’t have boosted sales enough to help margins. After all, the logic says, if you cut prices in half then you’ll have to sell twice as much to make up the difference. And with the best will in the world, that’s unlikely to have happened.
M&S, which reports results on Wednesday, is widely expected to announce one of its worst ever Christmas trading performances accompanied by another profit warning. The retailer is one of the UK high street barometers, so its performance will be keenly watched. It was also one of the most high profile discounters over the festive season with several one-day sales in which it cut prices on all clothing items by 20% in an effort to stimulate flagging sales.
But industry observers believe the move is unlikely to have had the desired effect – and are expecting an 8.5% drop in sales of general merchandise (which includes clothing and footwear) in the 13 weeks to 27 December.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- "Power of the many" drives change at Otto Group
- Vietnam grows share of US apparel imports in 2016
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- Inditex and H&M boycott Dhaka Apparel Summit
- Macy's will "do the right thing", says Lundgren
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022