During the Covid-19 year, the group reacted by accelerating the importance of proximity on its production, with 49% of total suppliers. The group stopped working with 65 suppliers in China.
Organic cotton has become a synonym for sustainability, but several scandals with fake certifications in India and forced labor in China question this raw material.
The company’s net sales decreased by 21 percent in the quarter ended 28 February. The Swedish group has also issued a statement after the boycott suffered in China.
The fashion retailer had a turnover of 6.6 billion euros online last year. High-street rivals H&M and Gap generated online less than €6 billion each last year.
H&M, Zalando and C&A lead fashion sales in Germany, while Marks & Spencer, Next and Primark take the main spot in the UK. France is dominated by sport players and Italy by pure players.
Average rents along Manhattan’s 16 retail corriders have being declining for eleven consecutive quarters. In the UK, retail store vacancies have reached its six-year high.
When consumers work from home, they reallocate spend similarly to consumers in retirement, and apparel is the category that experiences the deepest decline.
The announcement follows senior leadership changes made last week. Nike intends to streamline its organization to transform the company faster.
The apparel retailer was founded in 1818 and has dressed presidents from Abraham Lincoln to Barack Obama. It is know owned by Italian businessmen Claudio del Vecchio.
The Hong Kong-listed apparel retailer filed for Protective Shield Proceedings for six German subsidiaries last March.
The Swedish giant reported a pre-tax loss of 6.5 billion crowns ($685 million), against a year-ago 5.9 billion profit. The group is going to increase the pace of closures with around 170 gross closures this year.
Fashion groups that depend on these two markets follow closely the evolution of the pandemic and the business structure in both countries and are already beginning to think of alternatives.