Victoria Waldersee / Ruma Paul
LIZBIN / DHAKA, February 8 (Reuters) – While stock surpluses continue in Europe and the US, apparel retail companies are also cutting their spring orders. Garment factories in Bangladesh are in bad shape.
The global textile industry, adversely affected by 2020, is losing hope of recovery with new COVID-19 containment measures and the troubled progress of vaccination.
Last year’s clothes are still in stock, which should have been completely sold during the discount season at normal times by some major apparel companies.
For example, Primark, a garment chain in the UK, told Reuters that it still has around £ 150 million ($ 205 million) worth of spring / summer 2020 stocks and £ 200 million for fall / winter 2020 stocks.
McKinsey consulting firm states that the total value of unsold clothing in stores and warehouses around the world ranges from 140-160 billion euros ($ 168-192 billion), which is twice above normal levels.
British Marks & Spencer and German Hugo Boss He stated that they have placed fewer orders for this year’s spring collection.
This trend reflects negatively on major garment manufacturing countries such as Bangladesh, whose economies depend on textile exports. Factories are struggling to stay open.
According to a survey of 50 factories by the Bangladesh Apparel Manufacturers and Exporters Association, in most of Europe, pre-Christmas and January isolation measures negatively impacted companies, with factories receiving 30% lower orders than usual.
(Translated by Berna Suleymanoglu; Editing by Ceyda Çağlayan)
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.