Top stories this week on just-style include a look at why the apparel industry’s existing system of supplier payment terms is no longer fit for purpose, and why Primark’s bricks-and-mortar only strategy is threatened by Covid-19. In other developments, groups of labour rights activists, brands and employer organisations have separately outlined priorities to protect workers during the coronavirus crisis, and representatives from the Korean textile and apparel industry are calling on US department store retailer Kohl’s to reconsider its recent decision to unilaterally cancel orders.
Apparel industry payment terms no longer fit for purpose The current global Covid-19 crisis has placed severe strain upon the apparel industry supply chain, with garment manufacturers and related ancillary industries feeling the financial effects of the global collapse in clothing retail. The crisis has also thrown into sharp focus the inadequacies of the existing system of supplier payment terms.
Labour rights groups set priorities to protect garment workers A coalition of groups helping around 2,000 apparel brands and retailers to improve labour conditions in garment factories around the world is calling for urgent action during the Covid-19 crisis to safeguard worker income and health and future-proof supply chains.
Korean textile firms criticise Kohl’s order cancellations Representatives from the Korean textile and apparel industry are calling on US department store retailer Kohl’s to reconsider its recent decision to unilaterally cancel orders – which it says puts at risk the livelihoods of nearly 200,000 workers around the world.
Brands join ILO push for emergency funding for suppliers Apparel brands and retailers – including Adidas, C&A, H&M Group, Inditex, M&S and Primark – have joined employer organisations, unions and the International Labour Organization (ILO) to push for emergency funding to support garment factories and workers through the Covid-19 pandemic.
Primark’s dominance threatened by Covid-19 Value fashion retailer Primark has reported revenue of GBP3.7bn (US$4.5bn) for the first half, representing a 3.9% uptick in constant currency and a 2.2% rise at actual exchange rates. But the Covid-19 outbreak is set to drastically impact its performance for the rest of the financial year – and is likely to give Primark reason to rethink its bricks-and-mortar only strategy for the future.