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Tous leaves three countries in a movement that apparel supports to achieve permanence despite the circumstances that have occurred of inflation and energy crisis that have economic decisions in suspense.
Information from lainformacion.com projected the estimated sales of Tous in the world.
Apparel has given various headlines lately, where we have learned the same about the closing of stores as about the creative rupture between big brands.
All leaves France, the United Kingdom and Italy, according to information released exclusively by The Economistwhere it is argued that these economies will continue with the e-commerce channel, while in countries like Ukraine, it will cede its stores to franchise partners.
“The liquidation of the observed companies responds to the strategic decision, adopted and implemented during the 2020 financial year, to adapt the business and focus on those areas and regions that were already planned and that allowed Tous to lay the foundations for long-term growth , shedding part of its commercial perimeter”, cites information released by media that have leaked the news.
When the “2022 Fashion Industry Benchmarking Study”the report He found the most important business challenges for the fashion industry, based on consultations made to managers for this 2022.
39 percent considered that it led to an increase in the cost of production or supply; for shipment delays and supply chain disruptions voted 39 percent; a third challenge considered by 30 per cent, was the management of the risk of forced labor in the supply chain; for Inflation and economic perspective in the United States they voted 27 percent; for managing geopolitics and other supply-related political instability, 12 percent; human resources issues, including recruiting and retaining talent, 12 percent; invest and upgrade technology, 9 percent; compliance with business regulations, 9 percent, and market competition in the United States, by physical stores, 6 percent.
Closing, the new challenge in retail
Closing stores in the midst of contingency and now in inflation has been a logical measure for brands in all segments, not only jewelry, but also clothing. In the midst of a health contingency phenomenon, microsoft announced the irreversible closure of its physical stores, to focus on the DTCs of its website, moving all of its inventory online, and increasing offerings to include customer service, training, and more.
At the time, the corporate vice president, Dave Porterencouraged the decision, arguing that e-commerce sales had increased, which gave commercial hope.
Another resource that confirmed at the time Zara It was the closure of 1,200 physical stores, so that on that occasion in which they carried out the calculation, their total business fell by 25 percent in electronic commerce.
The clothing has contracted in its operations with physical stores in the world, but strengthens the DTC channel that seeks to bring many stores to a store profile pure Player, however, there are challenges to take into account in this task.