Blog: Retailers expand despite margin hit

Joe Ayling | 3 May 2011

Last week saw value fashion retailer Primark warn of continued weakness in the UK retail market, while planning further store openings in mainland Europe.

Reporting an 11% revenue rise for the first half of the year, Primark said that a combination of price competition and higher cotton prices remained a challenge to margins.

Nevertheless, Primark now operates 214 stores and is planning to open five stores in Germany early next year.

Another UK high street operator, JJB Sports, secured a GBP65m (US$106m) fundraising plan last week, while US retailer American Apparel has been rescued by $14.9m in new financing from a group of Canadian investors.

Also last week, Italian luxury fashion house Prada Group inked a deal to open retail stores for its Prada and Miu Miu brands across the Middle East. A joint venture company, with UAE-based Al Tayer Insignia, will be established in Dubai.

UK footwear chain Clarks, meanwhile, whose expansion into global retail markets including China and North America now rivals its domestic sales, has completed a joint venture deal to operate in India.

The venture, with Indian retail powerhouse Future Group, has opened a first Clarks store in New Delhi - with 20 more stores due by the end of the year.

Last week's news demonstrates how some clothing and footwear retailers are exploring the potential of new retail markets as they fight against rising cost pressures. Others, such as JJB and American Apparel, meanwhile, will remain focused on keeping their heads above the water.


BLOG

A new re:source from just-style

Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...

BLOG

Trump's trade ramifications continue to unravel

Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....

BLOG

What's in store following Trump's election?

One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....

BLOG

Political shadow over apparel supply chain

As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...

just-style homepage



Forgot your password?