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.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Why collaboration is key to fashion supply chains
- Rana Plaza four years on – Timeline of change
- Industry groups reaffirm commitment to Bangladesh
- Trump and Brexit get a dose of pragmatism
- Using worker surveys to drive supply chain change
- Adidas to digitalise Speedfactory concept
- Nike filed patent for "reinforced denim"
- M&S extends sourcing deal with Lindsey brothers
- US Q1 in brief – Columbia Sportswear, Amazon
- Lenzing unveils new sustainability strategy
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar