Home / Knowledge / News / Fashion / Fashion retailers cutting costs & inventory amid economy crisis
Fashion retailers cutting costs & inventory amid economy crisis
Jun '09
The economy has been in crisis for some time now, but Karen Videtic, chair of the Department of Fashion Design and Merchandising at Virginia Commonwealth University, says that clothing retailers are just adjusting now, and consumers can expect big changes on the sales floor.

“The sales floors won't look as deep. They may have the same amount of styles, but not in the depth of the colors and sizes they had before, or they might just have fewer styles,” Videtic said. “You may go into a store and it will look a lot less crowded. The racks may look a little thinner.”

Fashion retailers are cutting their inventory after having to massively mark down prices on extra merchandise over the past year. And because retailers are making drastic changes, Videtic warns that consumers should not expect the same deals that have been prominent.

“[Retailers] kind of trained us over the last six months to not buy full price, because it's going to get marked down. All the retailers are marking things down,” Videtic said. “But what may well happen coming up this holiday season is, because they bought narrower and closer, taking a lot less risks than they had previously, we may well find that when we go to the stores, there will be less merchandise. So my advice to consumers would be, buy early, so you get what you want. And don't expect the mark-downs we saw last year.”

Retailers are doing a lot to cut their costs, and according to Videtic, stores will look sparse because of less merchandise and fewer sales people. But in this economic crisis, that might not be enough, forcing clothing retailers to look for more creative ways to cut back.

Videtic says clothing stores can not get much cheaper labor than they already have, so many retailers are cutting back on manufacturing by selling their warehouses and changing their fabric choices in favor of cheaper materials. Because of these changes, Videtic says buyers need to be extra careful.

“You have to be a little savvier than you were in the past few years. You have to really check out the fabrication, and you need to look at the details to see whether you're really getting a good deal,” said Videtic. “It may look like a great deal – 'oh look how much cheaper it is this year' – but you need to see where they cut their costs.”

Clothing merchandisers are not the only ones taking a step back because of the economy. Videtic says the recession may have lasting effects on how consumers value clothing items, particularly certain brands. By having to cut back on spending, many fashionistas are changing their minds about spending hundreds of dollars more on a garment for the label alone.

Consumers are changing their “perceived value” of brands, she says, and starting to put more emphasis on function and garment quality than designer names.

Merchandisers are making such enormous changes to adapt to the recession that they will not be able to turn it quickly back around when the economy picks up, Videtic says.

“This is a really deep change. So if the shift changes back, how fast can you get the factories up and running again? Probably not fast enough,” Videtic said. “So I think for us, as consumers, we need to be aware. For retailers' sake, they hope they have demand, but as a consumer, we may find that our merchandise needs may not be able to be met.”

Virginia Commonwealth University

Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search