What Stumbling Blocks Are in Store This Year for Apparel Makers and Retailers?
February 16, 2017
California Apparel News
By: Deborah Belgum
The retail road last year was littered with bankruptcies, and the trend may continue.
No one doubts that consumers are shopping in ways never seen before, leading to tough times for clothing stores and malls now competing with online sites that offer free delivery on many goods.
Technology continues to evolve, leaving behind those who don’t adapt quickly enough to keep up with social media, online sales, omni-channel offerings and mobile devices.
The California Apparel News recently spoke with several finance-industry executives about what challenges and bumps in the road apparel manufacturers and retailers are facing this year now that the uncertainty of the presidential election is over, but another set of uncertainties have cropped up under a new administration.
Lou Sulpizio, Senior Vice President, West Coast Marketing Manager, Capital Business Credit
This year will pose many challenges as there is a tremendous amount of political and economic uncertainty in the world today that undoubtedly will have a direct impact on the apparel industry.
New tariffs being discussed on China and Mexico could affect margins as well as an ever-changing retail landscape. This could cause stress among the wholesalers/retailers as they will have to rework their business models, and sourcing channels might also be affected. So clients will need to be flexible and act quickly to change.
There is also constant chatter from the U.S. Treasury about increased interest costs. If interest costs increase, income could be impacted as a result. Although modest, they have an adverse effect on consumer buying habits.
Clients need a finance company that can react quickly and in a timely fashion to meet the global finance challenges that exist today.
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