Primark, the fast fashion brand from UK, may face scarcity in the supply of clothes in the second half of the year if the situation doesn’t improve in China soon.
As the world is aware by now, there has been huge production delays in China owing to the outbreak of Coronavirus that has so far killed around 2,400 people in the country and is impacting global economy in a big way.
Confirming ablout the possible shortage of clothes in the second half of 2020, Associated British Foods, which owns the brand, said that keeping lunar New Year in mind, it had built inventories, which will help the brand sail through for few more months.
However, if there are more delays in production, then there could be a surge in shortage of clothing.
The Group also said that it is putting efforts to enhance production from its current suppliers in other countries so as to cut down the losses.
More on this, John Bason, Finance Director, ABF, said that Primark is in talks with suppliers in countries like Vietnam, Bangladesh and Cambodia and others to fill the void.