| Global retail industry news |  |
| Global Industry Watch |  |  |
|
- Shift in consumer spending poses challenge to retailers
A PricewaterhouseCoopers report found that 60% of consumers have reacted to the economic downturn by tightening their belts and trading down. The shift in spending habits, which has hit groceries and travel the hardest, has created a new challenge for retailers. "There has been a long-term shift," said Mark Hudson, retail and consumer leader at PwC. "A high proportion of grocery shoppers changed their spending through down-trading and switching, and for a significant number the switch is permanent." The Times (London) (subscription required)
(30 Oct.)     
| Retail in Europe | | |
|
- Retail sales in Germany drop for 2nd consecutive month
German retail sales dropped 0.5% in September compared with August, according to the Federal Statistics Office in Wiesbaden. Retailers suffered a 1.8% dip in August compared with July. Companies in Germany reduced workers' hours, leaving many consumers with less money to spend. "Although the extensive use of the short-time work scheme strongly helps to stabilise employment, employees have to accept lower incomes," said UniCredit Group economist Alexander Koch. "The German economy is growing again, but private households are still likely to face a consumer recession." Bloomberg
(30 Oct.)
| Retail in Asia | | |
|
- Hong Kong-based Bossini sees growth in mainland China
Bossini, an apparel retailer based in Hong Kong, said in its annual financial report that mainland China was the only marketplace where its revenue increased over the past year to the end of June. Bossini's total annual revenue fell to HKD2.254 billion, a 3% decline over the previous year. The retailer has increased its outlets in China to capitalise on opportunities there. ChinaRetailNews.com
(30 Oct.)
- Chinese are expected to balk at high price of iPhone
Consumers in China appear less than excited about the launch of Apple's iPhone, with the cost of the device the main issue. "It's too expensive," said Marco Bai, a teacher. He said many smartphones are available in China with functions similar to the iPhone, and they are significantly less expensive. China Unicom is offering a 32-gigabyte iPhone 3GS version for 6,999 yuan, or a little more than $1,000. The Wall Street Journal (tiered subscription model)
(29 Oct.)
- Levy on plastic bags in HK has had little effect, retailers say
A Hong Kong retailer group is calling for the HK50-cent tax on plastic bags to be applied to all stores. Currently, the levy only applies to bags sold at large retailers. Over about three months, consumers paid HK$3.2 million for the plastic bags. The Hong Kong Retail Management Association said the results indicate that the tax is doing little to dissuade shoppers from using plastic bags. The Standard (Hong Kong)
(30 Oct.)
| Retail in Latin America | | |
|
- Colombia's Exito to raise funds for expansion plans
Almacenes Exito, the largest retailer in Colombia, has announced plans to raise roughly 435 billion Colombian pesos, or $223 million, through a share sale. The money would be used to finance Exito's expansion and to complete the acquisition of retailer Carulla Vivero. "The acquisition of the stake in Carulla will be good for the company, which will totally merge the two companies and will be able to save on administration costs and, possibly, on taxes," said market analyst Mauricio Restrepo of Bolsa y Renta. The Wall Street Journal (tiered subscription model)/Dow Jones Newswires
(27 Oct.)
| E-commerce Spotlight | | |
|
- Survey: Postal strike affects Web shopping behavior
A poll by ICM found that almost half of consumers in the UK plan to limit their online and mail order purchases if the Royal Mail postal strike continues. The survey found that 22% of respondents already have had deliveries delayed because of the strike. Amazon, John Lewis, Debenhams and other retailers have tried to assure their online customers that they are continuing with business as usual. Retail Week (U.K.)
(30 Oct.)
| Spotlight on Fashion | | |
|
- Versace expects to post a loss as demand deteriorates
Versace, a luxury-goods company based in Italy, said it will significantly reduce its workforce as it expects to post a loss for the year. "Trading conditions in the wake of the global financial crisis have been severe, and the company expects to make a loss in 2009," said CEO Gian Giacomo Ferraris. Earlier this month, Versace announced that it had closed three of its outlets in Japan. Google/Agence France-Presse
(29 Oct.)
| NRF News | | |
|
| SmartQuote | | |
|
 | Clothes make a statement. Costumes tell a story."
--Mason Cooley,
college professor
|
| |
|
