September 23, 2020

Textile sales bottom out for discounts and online

Textile sales bottom out for discounts and online


MadridUpdated:

The Christmas campaign and the January sales are not what they used to be. According to the textile trade association, Acotex, sales 3% fell in December accumulating a decrease of 2.2% in 2018 with respect to the previous year. Neither January brought better news: turnover fell by 1.9%. From this employers, they attributed to two factors: the "madness of continued discounts" (rebates, "Black Friday" …) and the growth of the online channel. All this confirmed to ABC the president of this employer's association, Eduardo Zamácola, is leading to rethink the "Black Friday" as a prelude to the Christmas campaign. As the CEO of Neck & Neck acknowledged, there is also debate about the current sales periods. For this reason, he pointed to the need to "adapt supply to demand", to "know the customer well" with "big data" and "abandon the two annual collections" for shorter sales cycles.

In the Spanish Confederation of Commerce (CEC) coincide with the textile employers in that the permanent sales are ballasting the results and interpret the latest data as "a hard blow" in a month of December that was traditionally considered positive. The Secretary General of the CEC, José Guerrero, recalls that this is a reality that has been denounced for years, specifically since the liberalization of the 2012 sales with the current "avalanche of discounts". In this sense, Guerrero advances that they have requested the Ministry of Industry "a return to the official periods of sales and at the same time that these terms are only extended for a month or they start later".

The general secretary of the CEC confirms that those who suffer most from this crisis are the owners of the shops of all their lives because they can not keep up with the discounts offered by other large companies or online platforms. «The sector is at a crossroads. If no action is taken, we will observe a historic closing of establishments at the end of 2019 », warns Guerrero, who is" extremely worried "about the lower consumer confidence due to political uncertainty. Fátima Hernández, vice president of the "Fashion Triangle" wholesale center (Madrid), said: "It is very necessary that we all join in favor of shorter sales periods," he says.

On the other hand, Eduardo Irastorza, professor of EAE Business School and author of the study "The textile sector in 2018", agrees that the difficulties of the business at street level come for an "overabundance of discounts", but also for the digital commerce boom and increased competition. "The sales have extended to so many dates that they are no longer credible. Before they were limited to two periods, "explains Irastorza. In his report, he also notes the need for change in the physical sale "to turn the store experience into his best ally, to combat the rise of online sales."

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