Posts Tagged ‘ Marks & Spencer ’

Zara and H&M launch online shopping service

Tuesday, August 10th, 2010

Leading fashion retailers H&M and Zara will both go live online in September.

From next month, shoppers who are based outside of the London store range will be able to buy their favourite outfits via the internet as the clothing providers attempt to buck the increasingly dour trends hitting the high street.

Zara, which is owned by the Spanish company Inditex, will launch its new website simultaneously across the UK, Spain, France, Portugal and Italy on September 2, and while they have previously offered a range of homewares online, the revamped website will mark the debut of fashion lines that have in the past been only available in-store. H&M will launch its new online venture a fortnight later, offering men’s, women’s and children’s clothing in addition to their own range of homeware.

The current gloom facing that has beset consumer confidence in the UK and across Europe has led several major retailers to warn that widespread cuts in public sector spending will have a knock-on effect for individual customers. The recent austerity budget from Chancellor George Osborne had created increased worry across the UK over employment and wage prospects, leading to a tightening of the purse strings.

Both Marks & Spencer and Next have warned that consumer spending is likely to be constrained in the coming months as the new coalition government’s emergency budget combines with the rise of VAT at the end of the year to keep customers out of high street shops.

Garment workers continue to protest in Bangladesh

Monday, August 2nd, 2010

For the third day running, Bangladeshi garment workers have clashed with police over wage rates.

UK fashion retailers such as H&M, Tesco, Marks and Spencer and Zara are among the world’s leading companies that source much of their clothing from the factories in the Southeast Asian nation.

Despite the proclamation of a new, improved minimum wage for garment makers being announced by the government on Friday, union leaders have rejected the deal as being well below what was asked. The government has offered 3,000 taka (£27) per month to workers, almost double the previous minimum wage. The unions are holding out for 5,000 taka (£45) which they argue matches the rising cost of living.

With no work being done, the predominantly female labour force in Bangladesh’s second-largest industry have taken to the streets, where, urged on by union leaders, they have protested with bitter abuse and throwing stones – in some cases bricks – causing authorities to respond with batons and rubber-bullets. Around 80 people have been injured in the latest clashes, which are taking place across the country, taking the total number close to 300. Police have also claimed that in the outskirts of the capital Dacca, where at least 20 factories have closed, protesters have looted shops and blocked roads.

Bangladeshi Prime Minister Sheikh Hasina has called on workers to prevent major damage to the industry and livelihoods by accepting the new offer. A peaceful resolution is seen as crucial to sustaining the £10bn export sector, which makes up close to 80 per cent of the country’s annual income.

Minimum wage rise for Bangladeshi garment workers

Wednesday, July 28th, 2010

The long-disputed wage structure across garment factories in Bangladesh has at last received some positive news.

After months of protests, many of them ending in violence, the Bangladesh wage board has announced that the minimum wage for garment workers will be almost doubled.

Under the terms of the new arrangement, the average monthly wage will rise from 1,662 taka (£16) to be set at 3,000 taka (£16). A formal announcement of the wage increase will be made by the labour ministry tomorrow. Despite the increase, the wage limit falls short of the 5,000 taka called for by workers.

Leading UK retailers such as Tesco, Marks & Spencer, Zara, Carrefour and H&M all source their clothes from Bangladeshi factories, where the garment industry is the financial backbone of the country’s economy. The industry accounts for some 80 per cent of the nation’s exports and generates around USD$12 billion per year.

Earlier this year, many western fashion labels pressured the Bangladeshi government into reviewing the minimum wage structure after allegations that the country’s factories were using exploitative labour. As a result, the wage board convened an emergency committee made up of union leaders, garment manufacturers and government officials to address the crisis.

The conflict saw angry workers clash with local police in recent weeks and it is not yet clear if union leaders will agree to the new government offer, which, despite the increase, still leaves the garment industry in Bangladesh as one of the world’s lowest paying.

Summer sales hit the High Street

Wednesday, July 14th, 2010

The great summer sales have arrived, so get ready to spend at Britain’s leading high street retailers. Prices have come tumbling down as the sale signs have gone up, meaning now is the ideal time to grab that chic summer wardrobe item or get in on old stock before the cold arrives.

In even better news for shoppers, official figures have shown that the price of clothing fell by a record margin in the month of June, with retailers wielding the axe earlier than expected. This has analysts worried that the coming months could result in a raft of profit warnings, as Britain’s leading retail chains look to sacrifice immediate profit for the sake of sales. While this may be bad news for business, it is nonetheless great news for consumers.

Chancellor George Osborne’s so-called ‘austerity’ Budget has not yet hit shoppers where it matters most – in their pockets, as retailers steady themselves for an excepted economic downturn as consumer spending will be reduced in the months ahead. The result is that right now is the best time to find the best bargains, with fashion stores offering a huge range of incentives and promotions to tempt the last remaining pennies from the public.

Debenhams, Next and Marks & Spencer are all featuring great deals on fashion-wear at the moment, with customers being openly wooed to spend and save. These stores are just some of the group which saw price-slashing of around 3.4 per cent last month, with women’s wear leading the way in cost reductions.

High street spending continues to slow

Friday, June 25th, 2010

High street shops have again suffered a slump in sales.

For the second consecutive month, retailers such as Marks & Spencer, H&M, Gap, Thomas Cook, Tesco and Sainsbury’s combined to record an additional downturn.

To compound matters, economists have warned Chancellor George Osborne’s tough budget will result in further cuts to consumer spending.

In the latest monthly retail survey from market analyst CBI, figures fell by five per cent in June, well short analyst’s forecasts of positive 5 per cent growth. June spending continued the trend seen in May, where a surprisingly weak rate of -18% per cent was experienced. CBI did suggest that the World Cup would offer retailers a limited respite, as will the predicted spending rush on before the VAT hike in January, but that overall the retail growth outlook remains tepid.

The survey, polled respondents from May 29 to June 10, the beginning of the World Cup, revealed that the largest spending downturn in June was in leather goods and footwear, with hardware and DIY supplies also suffering. The areas that did show increased spending were around the football tournament in South Africa, with food, drinks and television sales all up.

Despite the poor results and gloomy forecast, retailers remain optimistic that a rebound will be seen in July, and many are relying on higher consumer spending in the second half of the year before the VAT is raised from 17.5 per cent up to 20 per cent in January. The British Retail Consortium, however, has warned that the rise will cause job losses and a rise in inflation.