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.
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...
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...
- What TTIP might mean for US, EU textiles & apparel
- Four steps to reduce product defects
- Unlocks for the future fashion sourcing landscape
- Geo-political uncertainty and how to survive it
- Adidas raises the bar for North America sales
- H&M, VF Corp and Levi among most ethical companies
- US Q4 in brief – PVH Corp, J Crew, Perry Ellis
- Sears has "substantial doubt" of future
- Vietnam limits hazardous chemicals in apparel
- PVH Corp to acquire e-commerce retailer True&Co
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Outdoor performance apparel 2016: A broader perspective