The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
German retail sales plummeted in June as consumers cut spending on non-essential goods to cope with record inflation.
Sales were down 9.8 percent from the previous year, the most since 1980 — before the country’s reunification. Non-food items such as furniture and household appliances or clothing and shoes registered even steeper declines.
The data add to an already strained outlook. Europe’s largest economy is suffering like few others from surging inflation as a result of Russia’s war in Ukraine, supply chain disruptions and the prospect that energy rationing in the winter will shut down some of the country’s factories.
Output stagnated in the second quarter, and more and more economists argue that a recession later this year is inevitable. Inflation unexpectedly accelerated to 8.5 percent in June and is set to climb further in the coming months when temporary fuel-tax rebates and subsidised public-transport tickets expire.
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By Jana Randow
Learn more:
What Will a Recession Mean for the Luxury Market?
An impending economic downturn is top of mind for the sector right now. BoF breaks down the key implications for the industry.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.
Manhattanites had little love for the $25 billion megaproject when it opened five years ago (the pandemic lockdowns didn't help, either). But a constantly shifting mix of stores, restaurants and experiences is now drawing large numbers of both locals and tourists.