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Asda's George to jointly source with Wal-Mart
Jun '11
George, the clothing division of Asda, the UK supermarket chain and subsidiary of the American retail giant Wal-Mart, has announced joint sourcing with Wal-Mart, the world's biggest retailer in terms of sales. The step is part of a drive to achieve closer partnership between Asda and Wal-Mart on sourcing.

In their effort to moderate the increases in prices of cotton and other input materials, George and Wal-Mart will jointly procure fabric, which accounts for 40-45 percent of the garment cost.

Initially, George has set a target to purchase 20 percent of the fabric it needs, jointly with Wal-Mart, in a time span of 18 months. George also plans to take its cooperation with Wal-Mart forward and is considering joint sourcing for garments as well.

In spite of the joint sourcing, prices at George are expected to increase by 5-8 percent this autumn season, owing to the rising input costs and the continuing wage inflation in China.

Besides sourcing more closely with Wal-Mart, George is focusing on how fabric is cut. It plans to get the most out of every inch of fabric and minimize its wastage.

George at Asda is also evaluating its production units and is considering options to bring manufacturing nearer home from Southeast Asia. It has already started a production unit in Turkey, and is also procuring some fabric from the UK for the autumn season.

Fibre2fashion News Desk - India

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