Retail woes will continue till 2021!
At least that’s what Tal Apparel Ltd., which supplies to retail bigwigs like Brooks Brothers and Lacoste, believes.
The Hong Kong-based apparel manufacturer has predicted a massive fall of 40 per cent in its 2021 sales.
With several retail stalwarts going bankrupt and many more in the pipeline, the sales are going to be hit in a big way.
Further corroborating on the same, Roger Lee, CEO, TAL Group, said that following Brooks Brothers Chapter 11 filing, many more brand could file for bankruptcy. “The brands that we are working with are not optimistic,” added Roger.
TAL Group, which also works for Michael Kors, Dockers and Bonobos among others, has already pivoted into make high-quality washable masks. Business strategies have to be revisited and TAL Apparel seems to be already doing it.
The Group CEO back in March, when the world was grappling with the deadly pandemic, had hoped company’s apparel orders to pick up in winter and reach the pre-COVID level by next April. However, with cases rising again in the US and some parts of Europe, hopes of any recovery are fast diminishing.
Apparel sales will continue to go down and the company is now planning to permanently close its unit in Malaysia – in addition to reducing the capacity in its other factories as well.
Tal Apparel, which specialises in suits, trousers and blouses, has a yearly production capacity of 55 million pieces of clothing.