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The Q1, FY24 net profit of sportswear and footwear retail chain, Foot Locker plunged by 77.8 per cent to $8 million compared to the same period in 2023.
The company’s net sales decreased by 2.7 per cent in absolute figures and 1.8 per cent in comparable sales to $1.874 billion during the quarter. This decline excludes the impact of currency exchange and changes in the company's accounting scope.
Regionwise, Foot Locker registered a 1.4 per cent decline in sales to $1.369 billion in Ameriica while its sales Europe, the Middle East and Africa (EMEA) remained stable at $394 million (€364 million). The company’s sales in the Asia-Pacific region, however, dwindled by 23.4 per cent to $111 million.
For the full fiscal year, Foot Locker anticipates sales to either decline or grow by a single percentage point. The company’s robust performance during the first quarter of the year demonstrates the success of its ‘Lace Up’ plan, says Mary Dillon, President and CEO. This strategic plan positions the company for sustainable growth and value creation for shareholders, she adds.
Egypt's General Authority of the Suez Canal Economic Zone (SCZONE) signed a land deal with Eroglu Egypt for a 65,000-square-meter plot to build a readymade garment factory. This $40 million project in the Qantara West Industrial Zone is expected to create over 3,000 jobs and position the zone as a textile and apparel hub, according to Amwal Al Ghad.
The factory, built by Turkey's Eroğlu Global Holding A S, will focus on jeans production. With an annual target of 7.2 million jeans, 70 per cent will be exported while the remaining will cater to the domestic market.
This project marks the sixth of 15 planned for the zone, which has already attracted 144 projects with a total investment of $3.22 billion in fiscal year 2023-2024, according to SCZONE Chairman Waleid Gamal El-Dien.
Egypt's strategic location near the Suez Canal, one of the world's busiest shipping lanes, makes it an attractive trade hub according to data analysis firm GlobalData. Their report highlights the importance of Egypt's textile and apparel sector, which accounts for 8 per cent of exports, 34 per cent of industrial output, and employs 10 per cent of the workforce.
Undergoing a green transformation to reduce its environmental impact, China's textile and apparel industry aims to achieve zero carbon emissions before 2030 and carbon neutrality by 2060.
The industry currently emits around 230 million metric tons of CO2 annually, accounting for 2.8 per cent of national industrial emissions.
Cashmere manufacturer, Erdos Group leads the charge by setting up research labs to monitor grassland health and promote sustainable goat breeding practices; developing new dyeing and knitting technologies to minimise carbon emissions during production. These efforts have resulted in the company reducing emissions per cashmere sweater by 2.16 kilograms compared to 2022.
Aiming for carbon neutrality by 2050, sportswear giant Anta Sports also strives for zero carbon emissions and eliminating virgin plastic use in their own facilities by 2030. The company also aims to achieve zero landfill waste, and increase the proportion of sustainable products to 50 per cent of their total by 2030.
Focused on making denims more eco-friendly, Advance Denims plan to increase sourcing of sustainable and environmentally friendly fibers to develop innovative denim fabrics and collaborating with brands like Levi Strauss to offer plant-based denim options.
Textile leader, Jiangsu Dasheng Group is pioneers sustainable practices by implementing zero-carbon fiber raw materials in their production and constructing China's first green, carbon-neutral spinning factory with a capacity of over 6,000 tons annually (expected completion by 2025).
These efforts by China's textile industry are not only fostering new, environmentally conscious production methods but also promoting a harmonious balance between human activity and the natural world and setting a positive example for the global textile industry.
The latest report by Savills, a global real estate advisor, highlights a shift in the luxury retail landscape. The report, titled ‘Global Luxury Retail 2024 Outlook’, highlights while the market faces some challenges there is a shift in focus for luxury brands, prioritizing local markets and customer experience over aggressive global expansion.
The report acknowledges current economic challenges but emphasizes the long-term resilience of the luxury sector. While growth in store openings slowed in 2023 after a post-pandemic surge, Savills points out this doesn't signal a decline. Instead, it reflects a strategic shift by luxury brands towards a more customer-centric approach. This approach prioritizes understanding the specific needs and preferences of local consumers. The report highlights a rise in store openings in resort destinations, where affluent clientele live and vacation. However, finding suitable real estate in these areas can be challenging. Savills suggests that luxury hotel expansion might create opportunities for co-location, benefiting both retailers and hospitality businesses.
Key takeaways from the Savills Report
Customer-centric strategy: After years of tracking store openings, Savills emphasizes the increasing importance of the customer in real estate decisions. Brands are prioritizing locations that cater to their target audience's needs and preferences.
Local market focus: There's a move away from a purely global expansion strategy. Brands are paying closer attention to the specific strengths of each market and tailoring their presence accordingly.
Resilient luxury spend: Despite headwinds, luxury spending is expected to see average annual growth of 4 to 8 per cent by 2030, according to Bain & Company. This indicates a long-term optimistic outlook for the sector.
Strategic store expansion: While store openings slowed in 2023 compared to the post-pandemic boom, resort markets continued to see growth. Savills suggests luxury hotel expansion could offer new opportunities for retail partnerships.
Real estate a key battleground: Despite facing headwinds, real estate acquisitions by luxury brands reached new highs, indicating a continued focus on physical stores alongside digital strategies.
Focus on underserved markets: The report identifies cities with strong local affluence and potential for luxury retail growth, highlighting opportunities for brands in these areas.
The Middle East on the rise: Savills points to the Middle East as a region attracting growing interest from luxury brands due to its potential.
The report also emphasizes the ongoing importance of physical stores. While e-commerce remains a powerful force, Savills argues that brick-and-mortar locations are crucial for brand experience and customer engagement. Interestingly, the report finds that despite economic headwinds, property acquisitions by luxury brands are at an all-time high, indicating a long-term commitment to physical retail space. Savills also identifies cities with strong local fundamentals and a potential for underserved luxury markets.
Overall, the Savills report paints a picture of a luxury retail sector adapting to changing consumer habits and economic realities. While acknowledging short-term challenges, the report underscores the long-term strength of the market and the enduring importance of physical stores alongside a robust digital presence.
After two years of increases, silk fabrics imports by Japan dropped significantly in 2023, both in volume and value.
Silk fabrics imports by Japan dropped 5.2 per cent to 3.7 million sq m in volume during 2023 as against a 7.9 per cent growth seen in 2021. The value of silk fabric imports also declined to an estimated $29 million in 2023. Similar to volume, imports hit a peak of $65 million in 2013 and haven't recovered. The most significant growth came in 2022 with a 6.2 per cent increase.
Vietnam, China and Italy emerged as the top suppliers of silk fabrics to Japan in 2023. The most significant rise in exports of silk fabrics to Japan was witnessed by Vietnam with an annual growth of 0.3 per cent in volume over the past decade. On the other hand, the country’s imports from China and Italy declined.
By value, Vietnam ($13 million), China ($11 million), and Italy ($3.4 million) remained the highest importers of silk fabrics from Japan. Vietnam again led with an annual growth of 2.2 per cent in import value.
The average import price per square meter remained flat at $7.9 in 2023. Prices varied significantly by country. Italy had the highest price ($22 per meter), while Vietnam offered the lowest ($6.2 per meter).
Vietnam with 19 per cent saw the most notable annual price growth over the past decade, compared to other major suppliers.
China's cotton yarn imports declined by 35 per cent in April 2024 to around 110,900 tons compared to March 2024.
The unit price of cotton yarn imports increased to $2.48/kg, impacting cost-effectiveness compared to domestic yarn. The raising of prices by Pakistani and Uzbekistani yarn mills after the Chinese New Year led to a decline in imports by China from these countries. Chinese buyers also reduced orders due to the rise in international yarn prices. The country’s imports from Pakistan declined to 11,400 tons due to post-holiday price hikes while imports from Uzbekistan dropped by 12 per cent to 13,700 tons compared to March. China’s cotton yarn imports from India declined by 10 per cent to 13,900 tons compared to March.
China’s import of carded single yarn declined across all categories, with the most significant drop in 8-25s. Imports of blended cotton yarn also fell to 13,480 tons compared to March with Vietnam importing around 82.5 per cent of the required material.
There was a growing trend towards importing carded single yarn below 8s and combed yarn 30-47s during the month.
Surpassing Zhejiang, yarn imports from the Guangdong Province amounted to 4,565 tons. Imports from the Zhejiang province declined to 29.42 per cent. The import share of Shanghai surged to 17.71 per cent while the Fujian province witnessed the most significant decrease in yarn imports to 1,167 tons.
Overall, rising import costs and price sensitivity, continue to impact China's cotton yarn imports. The decline is likely to continue with the rise in international prices for yarn.
Set to make comeback at Superstudio Più in Milan on June 05-06, 2024, Denim Premiere Vision, will introduce the ‘A Better Way’ initiative to highlight the exhibitors’ sustainability efforts and their alignment with evolving environmental regulations. The program will also assist brands in promoting the best practices of exhibitors.
Developed with input from independent experts, the initiative involves questionnaires submitted to exhibitors and considers international certifications and labels such as GOTS, FSC, and Oeko-Tex Standard 100. Exhibitors participating in the initiative will be distinguished using five criteria: social initiatives, production site impact, traceability, product composition and processes, sustainability, and end-of-life considerations for finished products.
Approximately 90 exhibitors from 19 countries will participate in the exhibition, with denim spinners and weavers comprising about 62 per cent. Other exhibitors will include garment makers, promotional services, technologies, and accessory/component manufacturers. Lorenza Martello, Première Vision’s denim expert, will discuss Fall/Winter 25-26 denim collections that aim for a balance between understated volumes and striking embellishments, as well as a mix of moderate textures and opulent shapes during trend seminars.
The Fashion Forum will showcase fabric trends, and Project Tomorrow—a collaborative collection of 20 denim garments. Created by students from Milanese fashion design schools NABA and IED, these garments were prepared under the guidance of patternmaker Alessio Berto. Fabrics for this innovative project were donated by Japan Blue, Orta, Kuroki, and other mills.
Launched in 2022, the Denim Fashion District will return to the trade show with collections from established brands, rising stars, and innovative upcycling labels. Visitors can explore designs from Roy Roger's, Carrera Jeans, Fade Out Label, Stripes Of-f Road, Anna Galaganenko, SPOT Jeans, Hen's Teeth, Ksenia Schnaider, Madson, Afropicks, Manifattura Ceccarelli, and Daily Blue by Adriano Goldschmied.
The event will culminate with a panel discussion titled ‘Denim Titans’: Daring, Madness and Revolution’ on June 5, 2024. Denim industry icons Jimmy Taverniti, Adriano Goldschmied, François Girbaud, and Marithé Bachellerie will share their insights at the show hosted by Isko.
This year's Denim Première Vision promises a dynamic exploration of sustainable practices, innovative design trends, and the enduring legacy of denim pioneers.
On May 7, Andrea Guerra, CEO and Marketing Director and Lorenzo Bertelli, Head-CSR, Prada Group, marked a significant milestone in the Group’s industrial growth and sustainability efforts as it unveiled the expanded Torgiano knitwear hub.
The expanded Torgiano facility doubles the brand’s production capacity and employs over 200 locals, predominantly women, reinforcing its commitment to ‘Made in Italy’ craftsmanship and nurturing the next generation of artisans.
Defying the volatility in the luxury market, Prada Group reported an 18 per cent Y-o-Y growth in retail sales during Q1, FY24, its 13th consecutive quarter of growth. The brand’s strategy for creating sustainable value and its dedication to cultural conservation and change provide a competitive edge in a turbulent market while other luxury brands continue to struggle with sales slumps.
The European Union's ambitious Ecodesign for Sustainable Products Regulation (ESPR), provisionally agreed upon in December 2023, is set to transform the fashion, apparel, and textile sector. This regulation, with a focus on circularity and sustainability, promises to impact everything from supply chains to retail experiences.
Supply chain shakeup, from sourcing to sustainability
The ESPR mandates stricter environmental and ethical considerations throughout the supply chain. Manufacturers will need to prioritize durability, repairability, and recyclability."This means brands will need to work closely with suppliers to ensure they use sustainable materials, minimize waste, and uphold fair labor practices," explains Anna LeClaire, a sustainability expert at the Copenhagen Fashion Institute. This could lead to a shift in sourcing patterns, with brands potentially favoring suppliers closer to home or those with proven sustainability practices.
Spotlight on sourcing majors China and Bangladesh
Countries like China and Bangladesh, major garment producers, will feel the pressure to adapt. "For China, known for its fast and cheap production, the ESPR might incentivize them to invest in cleaner technologies and eco-friendly materials," says trade analyst Michael Lee. Large, export-oriented textile producers like China may face pressure to modernize and adopt cleaner technologies. However, this could also present an opportunity for them to become leaders in sustainable production.
Bangladesh, another major player, might face challenges in meeting stricter regulations, potentially impacting their competitiveness unless they invest in sustainable upgrades. Trade expert Liam Banerjee points out "Countries like Bangladesh, heavily reliant on garment manufacturing, may face initial challenges," Upskilling the workforce and adopting new technologies could be expensive. However, the ESPR could also incentivize these countries to develop a more sustainable industry, attracting environmentally conscious brands.
Fast fashion's future uncertain
The ESPR's ban on destroying unsold textiles directly challenges the fast-fashion model, notorious for generating massive waste. "The era of cheap, disposable clothing is ending," predicts fashion commentator Marie Dupont. While it may not eradicate fast fashion entirely, it will certainly make it less profitable.Trade experts remain cautious. "Curtailing fast fashion completely might be a stretch," says Banerjee. "But the ESPR will certainly make it less profitable. We might see brands focusing on higher-quality, longer-lasting pieces alongside smaller, seasonal collections." Experts believe the regulation, coupled with growing consumer awareness, could nudge consumers towards more sustainable and ethical fashion choices.
A move towards eco-friendly fibers
The ESPR emphasizes the use of recycled fibers and promotes phasing out harmful substances. This could lead to increased demand for materials like organic cotton, recycled polyester, and innovative bio-fabrics. There could be an increase in R&D of eco-friendly textiles that meet the new regulations. Expect a rise in recycled materials like polyester and cotton alongside natural, biodegradable options like hemp and organic cotton. Yarn production will need to become more efficient and minimize waste. Fabrics will be designed for durability and easier repair.
Retail revolution
Retailers in the EU will need to adapt to the new regulations. Transparency will be key. ‘Digital Product Passports’ will provide consumers with detailed information about a garment's environmental impact. This could lead to a shift towards brands that prioritize sustainability. "Retailers might also embrace repair and resale programs," suggests Agatha Fell a sustainability consultant for fashion brands. "The ESPR creates an opportunity for a more conscious and responsible fashion ecosystem." The ESPR's implementation is still in its early stages. However, its impact on the fashion industry is undeniable. It's a revolution that promises to make fashion more sustainable, ethical, and, ultimately, more responsible.
The ESPR is a significant step towards a more sustainable fashion industry. While challenges remain, the potential for positive change is undeniable. As the regulation unfolds, its impact on the global fashion landscape will be fascinating to watch.
From $4.4 trillion last year, the global online shopping market is expected to rise to $6.8 trillion by 2028, predicts a new study by Forrester.
Jitender Miglani, Principal Forecast Analyst, Forrester explains, the pandemic accelerated e-commerce growth as store closed and social distancing prevailed. However, in recent years with most stores reopening, there has been a reversal to physical shopping.
To regain momentum, e-commerce operators plan to launch new initiatives like shopping offers and generative AI projects. A survey by Nvidia in January indicates, around 98 per cent of retailers plan to invest in these technologies over the next 18 months.
Besides, other factors like maturation of online marketplaces, social commerce, livestream selling, direct-to-consumer commerce, expanding internet access and innovative payment solutions, are also likely to boost e-commerce growth, emphasises Miglani. The US e-commerce market alone is projected to rise from $1 trillion in 2023 to $1.6 trillion by 2028, accounting for 28 per cent of all retail sales in the market
The analysis by Forrester further suggests, overall global retail sales will reach $28.7 trillion by 2028. The study notes, physical shopping is proving resilient despite challenges faced by brick-and-mortar retailers including store closures by retail chains like Express, Rue21, and Macy’s.
Hence, physical shopping will continue to dominate in the near term with 76 per cent of the $28.7 trillion global retail sales occurring offline, projects the study
A report of Coresight Research points out, store openings in the US have outpaced store closures since the end of COVID-19 pandemic. Store chains in the country have been on a net opening front since the end of the pandemic, adds Bryan Gildenberg, Analyst.
