This is a section in BTT for the readers who are fanatical to know what is happening in retail world those are sourcing from Bangladesh. Deeds with them potentially involve and influence Bangladeshi textile & clothing manufacturing sector. Global retail world is important equally for our readers locally and internationally as Bangladesh has been considered as one of leading apparel & textiles manufacturers of the world.
H&M has noted a 10 per cent increase in its sales
Despite reporting a challenging holiday season last year, Swedish apparel giant H&M has noted a 10 per cent increase in its sales in the month of February. It growth in sales was 7 per cent in January and 10 per cent in December. As reported by a leading daily, H&M had warned in late January this year that markdowns to shift winter stocks, after unusually warm weather in key markets, would hit its December to February results, which are its fiscal first quarter.
Moreover, the company’s shares were 2.6 per cent lower, after it reported net sales in December through February of 43.7 billion crowns (US $ 5.2 billion), up from a year-ago figure of 40.3 billion but below a mean forecast of 44.0 billion. The retailer has been getting tough competition from Inditex, parent company of Zara, which said last week its sales in the five weeks from February 1 were up 15 per cent.
Zara has a secret weapon to beat every other retailer
Most retailers are faced with the challenge of keeping up with Zara. The retailer has a famously tight supply chain and rolls out runway-inspired styles rapidly. Parent company Inditex is routinely praised as having “the best business model in apparel.”
This seemingly unflappable success is no fluke. Zara has some secrets up its trendy sleeves that help it avoid fashion misfires. Many of traditional retailers like Banana Republic and J. Crew have suffered sales blows over the past year, when they have alienated their target customers. But Zara appears to have that problem solved before it even starts. This seems to be par for the course for the retailer, which famously doesn’t stock very much of one style, as Suzy Hansen of The New York Times noted in 2012, thereby allowing it to not have to worry about racing to clear inventory.
Ethisphere Institute honors H&M as one of the world’s most ethical companies
The Ethisphere Institute honors companies that excel in three areas: promoting ethical business standards and practices internally, enabling managers and employees to make good choices, and shaping future industry standards by introducing tomorrow’s best practices. And for the sixth time, H&M has been recognized by the Ethisphere Institute as one of the world’s most ethical companies.
Ethisphere has developed a framework over years of research to provide a means to assess an organisation’s performance in an objective, consistent and standardized way. The information collected provides a comprehensive sampling of definitive criteria of core competencies rather than all aspects of corporate governance, risk, sustainability, compliance and ethics.
Scores are generated in five key categories: ethics and compliance program (35 per cent), corporate citizenship and responsibility (20 per cent), culture of ethics (20 per cent), governance (15 per cent) and leadership, innovation and reputation (10 per cent) and provided to all companies who participate in the process.
Tesco breaks its downward slide by cutting sales decline in half
Tesco’s fortunes are starting to improve, if the latest wave of supermarket sales data is anything to go by. The UK’s biggest supermarket slowed its rate of decline, cutting it in half. By comparison, last year sales dropped 1.6 per cent, according to Kantar World panel.
Similar results were recorded by rival supermarket data company Nielsen, which said sales at Tesco fell 0.5 per cent. Analysts suggested that once store closures by the supermarket are factored in that means sales have probably been rising. David McCarthy, a retail analyst at HSBC, said: “It appears that on an underlying basis, Tesco sales are slightly positive. Once we take account of deflation (and we believe that Tesco has higher deflation than most), volume growth is well into positive territory.” He added that this is good news for suppliers, which would have seen volumes rise, especially since Tesco has cut down on the number of different lines of each product it stocks.
Smart Jeans : Levis joins project jacquard from Google
Textile & Technology are again coming together to bring one of the major revolution in the field of Innovations and this time its Google and Levi Strauss ,who are teaming up to develop a wearable technology that involves super fabrics. The eyes are on to develop smart fabrics that could make any clothes smart, turning trousers into touch pads and jackets into joysticks. The smart thread developed by the firm can be woven into existing clothing. Button sized computers will then allow it to communicate with a mobile phone and other devices.
The innovation named as Project Jacquard, which has been defined as the next step in wearable technology, could lead to smart clothes or high-tech carpet with touch screens that function like smart phone gadgets. Utilizing a new system for weaving technology into fabric by creating conductive yarn, the initiative incorporates touch and gesture interactivity into any textile made using standard, industrial looms .With Jacquard, the innovators are looking at how the access could be provided to the most important features of our phone in a way that enables us to maintain eye contact with the person across the table from us. Jacquard yarn structures combine thin, metallic alloys with natural and synthetic yarns like cotton, polyester, or silk, making the yarn strong enough to be woven on any industrial loom. Jacquard yarns are indistinguishable from the traditional yarns that are used to produce fabrics today.
Wal-Mart shares could hit $85 to $90
Wal-Mart Stores Inc has been struggling, but earnings could rise in fiscal 2018 by mid-single digits, lifting the shares to $85 to $90 within two years, weekly investment newspaper Barron’s reported. Wal-Mart is trying to spark growth by spending almost $5 billion to increase employee pay, improve the customer’s experience in stores and bolster its electronic commerce.
Robert Burnstine, president of Fairpointe Capital in Chicago, told Barron’s that much of the negative news is already priced into the stock and said he expects the shares to trade to $85 to $90 in the next two years. Connor Browne, of Thornburg Value fund, told Barron’s he sees $90 in several years.
Adidas plans to open 3,000 new stores in China by 2020
German sports apparel maker Adidas plans to open 3,000 new stores in China by 2020, according to Wal Street Journal (WSJ). Through its announcement made on Friday, the sportswear giant seemed to exude confidence boosted by its earnings report released on Thursday, which highlighted 18 per cent sales increase (excludingforeign exchange effects) in the China, Hong Kong, and Taiwan region last year.
In the fourth quarter alone, sales were up 16 per cent in the region. The Chinese government is also supportive by introducing new policies that aims at reforming soccer industry. These new stores will see a rise in retail locations in the country, from 9,000 to 12,000. Through its expansion plans, the retailer expects to cover more than 2,200 cities in China.
Adidas is not the only company that has gone for store expansion in China. Fast fashion retailer H&M has also reported that it has opened 54 stores there in the fourth quarter of 2015, after doing good business in China. Undeterred by the economic turmoil that China is undergoing, which last year recorded its slowest growth in 25 years, with the country slipping into recession and international isolation, retailers like H&M and Adidas are going big with expansions. The reason behind this is the market that they serve in China. Unlike luxury retailers like Burberry and Prada, who are not performing well enough, given the fact that the demand for luxury goods has fallen, the demand for everyday products remains strong with retail sales growing at 11.1 per cent.
Nike launches Hyper Adapt 1.0 ‘self-lacing’ sneaker
Nike is taking innovation to a whole new level; its shoes now lace themselves. The Beaverton, Oregon, company announced on Wednesday the Nike Hyper Adapt 1.0, the first sneaker with “power lacing.” After a decade spent securing patents, the company has unveiled an adaptive sneaker that it said was self-lacing and self-fitting. It will be the first mass-produced sneaker of its kind, the sportswear giant said.
The shoe has been 30-plus years in the making since the release of “Back to the Future” Nike CEO Mark Parker told CNBC’s “Squawk on the Street” during the company’s innovation summit Thursday morning. Nike is taking innovation to a whole new level; its shoes now lace themselves. The Beaverton, Oregon, company announced on Wednesday the Nike Hyper Adapt 1.0, the first sneaker with “power lacing.” After a decade spent securing patents, the company has unveiled an adaptive sneaker that it said was self-lacing and self-fitting. It will be the first mass-produced sneaker of its kind, the sportswear giant said.
Timberland opens Oxford Street store
Timberland has opened a new central London footwear store at 158 Oxford Street. The shop is the brand’s sixth London store. Spanning 90 square meters, the shop will stock footwear and a selection of accessories across menswear, women’s wear and children wear. It will also offer lace customization and a “Cobbler Station” manned by a Timberland expert where customers will learn how to take care of their footwear post purchase.
Ikea to expand in Ireland
Ikea is seeking expansion in Ireland following record revenues and profits in its Dublin store last year. 2.6m customers visited the store last year. Pre-tax profits from Ikea’s Ballymun outlet almost doubled to €13.1m last year, as revenues grew 17% to €131.9m. It was the Swedish retailer’s busiest year in Ireland since its first n 2009/10 during when it generated profits of €11.4m.”We are pleased to report positive growth in the Ikea Dublin store in financial year 2015,” said Store Manager Marsha Smith.
“What we have seen over the past few years is that where we invest, we see growth – whether it be in improving the shopping experience for our customers, lowering our prices or in developing and rewarding our people.” “In the past year we have continued to invest in the in-store shopping experience and undertaken rebuilds of our bedroom, bathroom and cooking and eating departments,” she continued.