Sourcing Journal Online

Inditex Plans Aggressive Global Expansion Via Upfront Procurement, Planning
Fri, May. 18, 2012
Through local sourcing and a quick-response-to-market-adjustments business model, Spanish clothing retailer Inditex has catapulted from a regional firm into a thriving global retailer. The company, owner of fashion chain Zara, saw its profits grow by 12% to $2.68 billion last year--reigning next to Swedish-based H&M as one of the world’s two largest clothing brands. Having conquered Europe, Inditex is looking to take this business model to new markets--starting with China. Their business model is underpinned by the upfront procurement of raw........ Read More
Suspension of EU Sanctions on Myanmar Could Threaten Bangladeshi RMG Exports
Mon, May. 14, 2012
The European Union’s recent decision to place its sanctions on Myanmar in yearlong abeyance could pose a threat to Bangladesh’s Ready Made Garment (RMG) manufacturing sector. Both Myanmar and Bangladesh have large, inexpensive labor pools with which to fuel their garment manufacturing industries’ proliferation, and with easier access to gas and electricity, Myanmar’s RMG sector has the potential to seriously undermine Bangladesh’s regional foothold. EU member states form the bulk of Bangladesh’s export mix and the entry of Myanmar into the RMG exporting market has the potential to further trim Bangladeshi manufacturers’ razor-thin profit margins. The EU’s suspension of its punitive sanctions comes in the wake of Myanmar’s April 1 elections, which....... Read More
Stakes High as Brands Look to Sustainability Initiatives
Thu, May. 10, 2012
“Over the last five to 10 years the awareness level, both among buyers and among vendors, has really increased,” said Avedis Sefarian, chief executive officer of Worldwide Responsible Accredited Production, a nonprofit certification body that has been working in the apparel industry for years. As awareness levels have risen around both social compliance and environmental compliance issues, the profile of sustainability efforts has also risen, he said. “Sustainability basically comes down to being able to continue doing whatever it is we’re doing today without endangering the ability of future generations to do the same,” Sefarian said. “Audits start the process, what takes us forward is education and training.” Given the current economic climate, however, it can be challenging for even the most well-meaning companies to implement sustainability strategies, industry experts said. With a faltering economy making brands and retailers even more cost conscious than usual, green initiatives can be a hard sell, noted Barry McGeough, vice president of hardgoods for Speedo, USA and formerly a sourcing executive with Pentland, The North Face and Teva Footwear with a focus on helping companies establish sustainability programs. Some of the less sexy pieces of the supply chain, like reducing packaging to increase container utilization, reveal some surprising bottom line improvements, which is starting to drive increased interest in sustainability initiatives, he noted. “From a supply chain perspective though....... Read More
Kohl's Beats Expectations Despite Inventory Shortages and Discounting
Sat, May. 12, 2012
Kohl's Corporation, the Wisconsin based mid-range department store, posted falling Q1 profits as a result of its new pricing strategy that aims to replace temporary sales with permanent discounting. The company also had trouble keeping up with high consumer demand for its store-label brands. Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “Our first quarter results reflect the implementation of our strategy to initiate lower pricing in order.... Read More
Vietnam Continues to Gain Share of U.S. Apparel Imports
Fri, May. 18, 2012
Although import growth in dollars from the top 10 U.S. trading partners slowed a bit in the last month, Vietnam managed to snag some market share from India, Pakistan and other key sources of apparel. Imports from Vietnam grew the fastest on both a dollar and unit basis, and had the greatest increase in share of U.S. dollar apparel imports for the first three months of 2012. Vietnam’s shipments to the U.S. represent 9.3% of year-to-date apparel imports, due primarily to an increase in U.S. demand for its man-made fiber dresses and women’s knit tops. Bangladesh and Mexico....... Read More

Richemont Full-Year Profit Beats Estimates on Asian Sales
- Submitted by SJ Staff on Sat, May. 19, 2012
Cie. Financiere Richemont SA (CFR), the second-biggest luxury goods company, reported full-year profit that beat analysts’ estimates as sales were boosted by buoyant demand for high-end goods in the Asia-Pacific region.

Richemont rose the most in nine months in Zurich trading. The maker of Cartier jewelry gets about 42 percent of revenue in Asia-Pacific, where the luxury market will expand as much as 16 percent this year, according to Bain & Co. The forecast excludes China, which the researcher estimates will grow as much as 22 percent. Richemont said sales in April rose 29 percent on a reported basis and 20 percent excluding currency swings.

Read More: http://www.bloomberg.com/news/2012-05-16/richemont-full-year-profit-beats-estimates-on-sales-in-asia.html
PacSun 1Q Loss Narrows; Shares Surge On Improved Same-Store Sales
- Submitted by SJ Staff on Sat, May. 19, 2012
Pacific Sunwear of California Inc.'s (PSUN) fiscal first-quarter loss narrowed on improved same-store sales and margins.

Shares surged 23% to $1.45 after-hours as same-store sales came in at the high end of company projections and the loss wasn't as bad as expected. As of Thursday's close, the stock was down 31% so far in 2012.

"We had a strong second half of the quarter that led to sales at the high end of our guidance and gross margins which exceeded plan," Chief Executive Gary H. Schoenfeld said.

PacSun has spent more than three years in the red as it has struggled with slumping sales and intense competition from other specialty retailers...

Read More: http://online.wsj.com/article/BT-CO-20120517-716329.html
Inditex Plans Aggressive Global Expansion Via Upfront Procurement, Planning
- Submitted by Ashley Vaughan on Fri, May. 18, 2012
Through local sourcing and a quick-response-to-market-adjustments business model, Spanish clothing retailer Inditex has catapulted from a regional firm into a thriving global retailer. The company, owner of fashion chain Zara, saw its profits grow by 12% to $2.68 billion last year--reigning next to Swedish-based H&M as one of the world’s two largest clothing brands. Having conquered Europe, Inditex is looking to take this business model to new markets--starting with China.

Their business model is underpinned by the upfront procurement of raw........
Vietnam Continues to Gain Share of U.S. Apparel Imports
- Submitted by Judith Russell on Fri, May. 18, 2012
Although import growth in dollars from the top 10 U.S. trading partners slowed a bit in the last month, Vietnam managed to snag some market share from India, Pakistan and other key sources of apparel.

Imports from Vietnam grew the fastest on both a dollar and unit basis, and had the greatest increase in share of U.S. dollar apparel imports for the first three months of 2012. Vietnam’s shipments to the U.S. represent 9.3% of year-to-date apparel imports, due primarily to an increase in U.S. demand for its man-made fiber dresses and women’s knit tops.

Bangladesh and Mexico.......
Updates on Global Cotton Trade Contract for 2012/13
- Submitted by SJ Staff on Fri, May. 18, 2012
World 2012/13 cotton trade is forecast to decline 10 percent to 37.6 million bales as a result of lower import demand by China and lower exportable supplies as production contracts.

Brazil, poised to overtake India as the world’s second largest cotton exporter in 2012/13, is forecast to export 4.4 million bales, down 2 percent from the record exports a year earlier. India is forecast to export 4.2 million bales in 2012/13, down 56 percent from the previous year, due to a combination of lower production and higher domestic consumption.

Read More: http://www.fibre2fashion.com/news/association-news/usda/newsdetails.aspx?News_id=111152
Analysis: Will Mild Winter Mean Summertime Blues for Retailers?
- Submitted by SJ Staff on Fri, May. 18, 2012
With the meteoric jump in shares of Apple Inc <AAPL.O> and turmoil in the bank sector garnering the spotlight in recent months, one group managed to fly under the radar despite strong gains - retailers.

Since hitting a 13-month low in early October and flirting with bear market territory, the S&P 500 <.SPX> has risen 17.2 percent. During the same time frame the S&P retail index <.RLX> has climbed 22.6 percent.

The gains were supported by a confluence of events: improvement in the domestic economy, a mild U.S. winter and a form of economic Darwinism that left stronger retailers intact after the recession......

Read More: http://www.cnbc.com/id/47464537
Destination Maternity Opens First Standalone India Store
- Submitted by SJ Staff on Thu, May. 17, 2012
U.S.-based maternity-apparel retailer Destination Maternity Corp. (DEST) Wednesday said it has opened its first standalone store in India with local franchise partner Mahindra Retail Ltd.

Destination Maternity had signed an exclusive franchisee agreement with Mahindra Retail in 2009 to operate branded retail stores and sell merchandise under the U.S. company's Motherhood Maternity, A Pea in the Pod, and Destination Maternity brands.

Read More: http://www.nasdaq.com/article/destination-maternity-opens-first-standalone-india-store-20120516-00577
Chico's Bets on New Styles to Drive More Full-Price Selling
- Submitted by SJ Staff on Thu, May. 17, 2012
Chico's FAS Inc (CHS.N) is wooing shoppers with new styles and designs, allowing the women's apparel retailer to sell more of its merchandise at full price and cut back on promotions that are crimping profits at rivals.

Shares of the company, which posted better-than-expected quarterly results, rose as much as 6 percent to $15.52 on Wednesday.

"Because of the strength of our product line we have been able to actually reduce promotions and concentrate on full-price sales in virtually all of our brands," CEO David Dyer said on a conference call with analysts.

Read More: http://www.reuters.com/article/2012/05/16/us-chicos-idUSBRE84F0I020120516
UK Retailer Sainsbury’s Reports Increased Market Share in Clothing
- Submitted by Shane Danaher on Thu, May. 17, 2012
UK hypermarket, supermarket and convenience store chain Sainsbury’s reported an increase in annual underlying profits with sales of clothing outpacing food in terms of their annual growth rates.

Sainsbury’s, Britain’s third-largest supermarket chain, has seen moderate success with its clothing ventures and reports that it “continues to gain market share”. Tu, Sainsbury’s in-house label, is currently Britain’s seventh-largest clothing brand by volume and sixth largest in terms of children’s wear. Currently, 161 of Sainsbury’s 872 location stock non-food items.

This increased share of the UK clothing market comes on........
Protests From Trade Groups Highlight Pakistan in Crisis
- Submitted by Patrick Lamson-Hall on Thu, May. 17, 2012
Pakistani textile exports fell 22% in value and declined steeply in volume as well, bringing overall Pakistani exports down by nearly $1 billion from 2011 to 2012 and prompting warnings from Mohsin Aziz, chairman of All Pakistan Textile Mills Association (APTMA). He advised that trade normalization with India and double-digit interest rates for exporters have made the business environment very difficult for local industry. His statements followed other rumblings from various trade associations in Pakistan, making it appear that Pakistani exporters are near a breaking point.

Pakistan has also.......

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