Retailing is the latest buzzword among the business. In retailing, it is tremendously important to keep a track of consumer needs, desires & all the factors that manipulate their buying actions. Innovations & constant value additions to the key enables in entire value chain will give a clear viable benefit & help the retail store emerge as a winner. World retailers those who are sourcing from Bangladesh and others are trying regularly to sizeable their dealing and innovation. Here are ten important news of those retailers for our readers. All are requested to send related news and information at farhan@textiletoday.com.bd
World’s top 10 apparel brands worth US$100bn
The world’s top 10 apparel brands have grown in value by 29% and are now worth close to US$100bn, according to the 2014 Brandz Top 100 Most Valuable Global Brand rankings. The top ten brands are respectively Zara (23,140 million U.S. dollars), Nike (24,579 million U.S. dollars),, H&M (15,557 million U.S. dollars), Ralph Lauren(6,323 million U.S. dollars), Adidas (7,192 million U.S. dollars), Uniqlo (7,303 million U.S. dollars), Next (5,716 million U.S. dollars), Lulu lemon (3,258 million U.S. dollars), Hugo Boss (4,526 million U.S. dollars) and Calvin Klein (2,004 million U.S. dollars).
Primark customer finds label claiming: poor labor conditions sewn into her dress
Several shoppers at European retailer Primark have gotten a shock recently, as clothing they purchased came with care labels claiming unethical working conditions at the company’s factories. Two customers in the UK’s Swansea reportedly found hand sewn care labels in Primark products. One said, “Forced to Work Exhausting Hours,” while the other claimed, “’Degrading’. Gallagher, who lives in Swansea, Wales, purchased the dress from Primark for the equivalent of $17. She found the hidden label when hunting for the washing instructions. The disturbing discovery made Gallagher re-think fast fashion.
Primark’s Code of Conduct sets out the core principles that suppliers and factories must follow to ensure products are made in good working conditions, and that the people making them are treated decently and paid a fair wage. Primark is committed to making working conditions safer for those who manufacture its products. It was the first UK retailer to sign the Accord on Fire and Building Safety in Bangladesh in order to work collaboratively with other brands and stakeholders in the industry to bring about sustainable long term change in the country.
J.C. Penney closes new $2.35 billion credit facility
J.C. Penney Co., Inc. announced that it has closed its new $2.35 billion credit facility comprised of a $1.850 billion revolving line of credit and a $500 million term loan. The new facility replaces a $1.850 billion credit facility that was slated to mature in April 2016. The company said the new facility also provides better pricing terms than the original. Shares increased 1.2% to $9.11 in pre-market trading following the news, and closed at $8.69. Proceeds from the loan will be used to pay down the cash borrowings on the previous facility. The revolving line of credit will be available for working capital and general corporate purposes. The arrangement was co-led by Wells Fargo, Bank of America Merrill Lynch, J.P. Morgan, Barclays and Goldman Sachs.
H&M eyes new markets after earnings increase 25% in Q2
Europe’s second-biggest clothing retailer, Hennes & Mauritz (H&M) reported a 25 percent increase in second-quarter earnings in its six-month report card. It is the retailer’s strongest quarterly profit growth in more than four years, boosted by online expansion in France and new stores, including the April grand opening of H&M’s Australian flagship in Melbourne. H&M says it is eyeing expansion into two new markets in the fall as it revealed strong earnings growth in the second quarter. In the three months to the end of May, net profit climbed 25% to 5.81 billion kroner (about $875.5 million) from 4.66 billion kroner a year earlier. That was in line with analysts’ estimate.
American Eagle outfitters expands clothing recycling program
Clothing retailer American Eagle Outfitters is expanding its partnership with I:Collect (I:CO), a closed loop textile recycling company. AE added a clothing and shoes recycling program in all of its 823 stores in the U.S. and Canada, beginning June 14. The program allows customers to drop off unwanted clothes, shoes and textiles from any brand into boxes marked I:CO at any North America store. The customers will then be rewarded with a text code for $5 off a pair of AE jeans to be used in the store that day. The proceeds from the program will be donated to the Student Conservation Association.
I:CO works with more than 60 partner brands to collect and sort donated clothes, shoes and textiles in over 50 countries. Other brand partners include H&M, Levi Strauss & Co., Footlocker, Puma and Forever21. I:CO’s goal is to integrate 100 percent of the textiles and shoes collected into a recycling process by 2020. To date, 30 percent of the collected items are recycled in a closed loop system.
British retail giant Marks & Spencer is thinking about opening in Australia
Marks & Spencer Group Plc, the U.K. clothing retailer and grocer, is seeking store locations in Tokyo as part of a plan to accelerate growth in Asia. Australia, Taiwan and Vietnam are also under consideration as new markets, Bruce Findlay, the London-based company’s Asia chief, said in an interview. Asia is among regions that Marks & Spenceris targeting as they seek to revive sales after years of stagnation at home. Marks & Spencer got 11 percent of sales from outside the U.K. in the 12 months through March. Overseas revenue rose at more than twice the pace of the U.K. over the past five quarters, according to data compiled by Bloomberg.
Marks & Spencer intends to add at least 30 stores in Asia this year, part of the 250 it plans internationally over three years. Of those, 15 will be in India’s smaller cities beyond Mumbai, Delhi and Bangalore, and two in the Chinese city of Macau, the world’s largest casino gambling hub. The retailer has more than 140 stores across Asia including China, Hong Kong, India, Singapore, South Korea and Thailand.
Lululemon Profits Plunge 59.9% in Q1
Lululemon Athletica Inc. is reporting a lower first-quarter profit of $19 million as the yoga wear company moves to boost its share price and move beyond boardroom controversy. Lululemon said that its board of directors has approved a stock buy-back program up to US$450 million of its common shares to create more shareholder value after seeing its shares sink over the past year.
Lululemon also said it has reduced its financial outlook for the rest of 2014. For the second quarter of fiscal 2014, Lululemon expects net revenue to be in the range of $375 million to $380 million and diluted earnings per share of 28 cents to 30 cents. For the full fiscal 2014, the company now expects net revenue to be in the range of $1.77 billion to $1.80 billion. Diluted earnings per share are expected to be in the range of $1.50 to $1.55 for the full year, or $1.71 to $1.76 adjusted. The guidance does not reflect the potential repurchase of shares.
Gap to be first American retailer to enter Myanmar market
Gap Inc. announced plans to source garments in Myanmar and will be the first American retailer to do so since the country began transitioning to a democracy three years ago, according to the report. Two factories in Yangon, the country’s commercial capital, are said to be producing products for the company’s Old Navy and Banana Republic brands.
A statement released by the U.S. Embassy said the clothing would be ready for sale in the U.S. by this summer. While Asian nations have long had a strong presence in Myanmar, it’s only in the last few years that companies from the U.S. and Europe have started returning, thanks to the easing of sanctions imposed on the country during its half-century of military rule. The retail market is especially attractive because of Myanmar’s abundant and cheap labor force.
Uniqlo looks to source garments from India
Fast Retailing Co Ltd’s Uniqlo, Japan’s largest clothing store chain, is looking to source garments from India, Uniqlo’s Chairman Tadashi Yanai told Indian Prime Minister Narendra Modi, according to an Indian government statement. Modi welcomed Unqilo’s interest in developing its business in India and highlighted the benefits the country’s garment sector offers, the statement said. Uniqlo has long been eyeing the Indian market to open its stores and industry officials said it is a likely step in that direction. A Fast Retailing spokeswoman said the company does not have any comment on the Indian government’s statement, which gave no further details. Fast Retailing, Asia’s top apparel retailer, has manufacturing partners in China, Vietnam, Bangladesh and Indonesia.
Zara Q1 net profit falls 7.3 percent, beats expectations
Spanish retailer Inditex, owner of the Zara chain, has revealed first-quarter earnings that came in above analyst expectations thanks to better than anticipated cost control.
Earnings in the three months to the end of April amounted to €406 million ($549.5 million). This was a drop on net income of €438 million a year earlier, but came in 3.8% above consensus analyst expectations. Inditex group sales in local currencies grew by 11% in the quarter to €3.75 billion, demonstrating a strong operating performance and favorable currency impacts.
Sales, however, were 0.8% below analyst consensus due to a 1% negative impact from the consolidation of Tempe, the company that designs and distributes footwear to Inditex’s retail chains, and in which Inditex has a 50% interest.
