Clothing Sales Down, Overall Retail Up
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Clothing Sales Down, Overall Retail Up

Photo by:   Pixabay, Fashion Network
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Pedro Alcalá By Pedro Alcalá | Senior Journalist & Industry Analyst - Tue, 03/31/2020 - 19:05

Some companies and distributors might be suffering the impact of the COVID-19 lockdowns but that does not mean they cannot collaborate in solving the global crisis.

According to a report from Fashion Network, Mexico’s Garment Industry National Chamber (CANAIVE) has confirmed that textile sales have been down 70 percent nationwide for the past few days. Additionally, this industry’s supply lines are expected to be affected for the remainder of the year. This situation is likely to interrupt continuity of production and companies’ financial stability. According to CANAIVE, “this generates a direct impact on 176 economic activities out of a total of 262, putting half a million jobs at risk.” CANAIVE predicts that by the end of the week, most of the country’s textile manufacturing facilities will have shut down, which will in turn create a chain reaction that is already beginning to show its consequences. Online retailers had to cancel clothing orders in order to prioritize the delivery of medicine and food. CANAIVE has already presented a set of measures to President López Obrador and is currently awaiting an answer.

However, some global players are facing the crisis head on. A Fashion Network report indicates that Burberry is now using its manufacturing plants to make face masks, as well as medical scrubs and coats. Meanwhile, some of the largest retailers in the clothing industry are actually preparing for an increase in sales, albeit not necessarily in the clothes department. There is perhaps no better example of this than the recent announcement of Walmart’s hiring spree to address the needs created by COVID-19. Another report from Fashion Network indicates that Walmart plans to hire a total of 5,250 new employees just for the Mexico and Central America regions as a direct response to COVID-19 measures. According to this report, 93 percent of all merchandise in Walmart’s Mexican stores come from local suppliers. This could mean that an increase in customers for mainstream stores like Walmart could be an opportunity for Mexican suppliers looking for the support they need, particularly during this current health crisis. 

Photo by:   Pixabay, Fashion Network

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