Home / Knowledge / News / Retail / COVID-19 impacting retail supply chains

COVID-19 impacting retail supply chains

28
Feb '20
An empty retail store after coronavirus outbreak in China. Pic: Shutterstock
An empty retail store after coronavirus outbreak in China. Pic: Shutterstock
The spread of COVID-19 in China and beyond is impacting supply chain, as well as sales and profitability of overseas retail brands operating in China. While constantly monitoring the situation and taking measures to ensure health and safety of employees, these brands are bracing for likely order fulfilment delays for the upcoming seasons.

“Like many other companies, the COVID-19 (the name given to coronavirus) outbreak is also impacting our supply chain. While only a low-double-digit per cent of our finished goods are manufactured in China, our contract manufacturers source a large portion of raw materials from China. Temporary factory closures and the pace of workers returning to work have impacted our contract manufacturers’ ability to source certain raw materials and to produce and fulfil finished goods in a timely manner," Columbia Sportswear Company said in statement.

"The outbreak is also impacting distribution and logistics providers’ ability to operate in the normal course of business. These supply chain impacts will likely affect our ability to timely fulfil orders and meet consumer demand. Given we have already received substantially all our Spring 2020 product, potential order fulfilment delays would impact future seasons,” the statement added.

SMCP, the global leader in luxury market having four brands sandro, maje, claudie pierlot and de fursac, said its sales and profitability are significantly impacted in China (a key market for the Group), and, to a lesser extent in the other regions, due to a decrease in Chinese tourists. "While SMCP had been generating a strong performance during the first 3 weeks of January in mainland China, a meaningful part of the Group’s stores has been temporarily closed in mainland China and in Macau since then. In parallel, the remaining stores are operating with limited opening hours," the company said.

“We have put in place a global team to monitor the situation daily, with the key priority of ensuring the safety, health and protection of our employees and our customers. While we cannot predict the duration of the crisis, we have been taking appropriate measures to mitigate the impact on our business," said SMCP CEO Daniel Lalonde.

Stating that the priority for the company has been to take appropriate measures to ensure the health and safety of its employees and partners, Columbia Sportswear chairman, president and CEO Tim Boyle said, “Thankfully, we have no reported incidents of our employees contracting the virus to date, and many of them are working remotely from home to help maintain business operations. While this outbreak will have a material impact on our near-term financial performance in China, we continue to believe China represents one of our largest long-term geographic opportunities."

Fibre2Fashion News Desk (DD)


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 26th Nov 2020

Bangladesh wants duty-free entry of 42 products into Nepal

Bangladesh has sought duty-free entry of 42 products, including...

Pic: Shutterstock

Textiles | On 26th Nov 2020

Curbs on exports to China may cripple Oz wool industry

The Australian wool industry may witness a crippling effect of...

Pic: Shutterstock

Retail | On 26th Nov 2020

BRC hails UK govt decision to open all retail after Dec 2

In response to Prime Minister Boris Johnson's announcement that all...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Technical textiles industry moving back to Europe

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Textile industry, Head honchos

Textile industry
Head honchos

Quality should be the #1 priority

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Bora Akris,

Bora Akris

Realkom, headquartered in Istanbul, is a fully integrated textile company...

Manuele Baggini,

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2020

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


Advanced Search