Thursday, May 23, 2024
HomeFashion & RetailGap has reduced its manufacturing exposure to China from 25 to 21%

Gap has reduced its manufacturing exposure to China from 25 to 21%

gapGap has been moving sourcing out of China for the last several years and will continue to do this responsibly going forward. Less than five per cent of its sales come from China. Gap has reduced its manufacturing exposure to China from 25 to 21 per cent over the past three years. The trade war threatens to increase costs for consumers and temper growth in its third largest market, mainland China. The supply chain agreements emanating from China are a sore spot. Specifically for China, the company is working diligently to mitigate the potential problem for consumers by incrementally moving away from reliance on the region. Including only apparel, its penetration is approximately 16 per cent, which is significantly lower than the relevant portions of the industry. That level is lower than that of peers like Abercrombie & Fitch, one quarter of whose goods are manufactured in China. Gap, based in San Francisco, has been battered by a big miss on earnings and serious declines in same store sales across its key brands. Inventories in the first quarter were up over ten per cent as sales slowed and the potential for tariffs to temper consumer demand could worsen.



Please enter your comment!
Please enter your name here

- Exhibition - spot_img
- Industry Associate - spot_img

Upcoming Events

Simillar News

Recent Random

BGBA President meets EPB Vice Chairman

In a landmark meeting today, the President of the Bangladesh Garment Buyers Association (BGBA) met with Mr. Ashosan, the Vice Chairman and CEO of...

Outreach and Engagement is Essential for the Cotton Sector

Seshadri Ramkumar, Professor, Texas Tech University, USA Opportunities for cotton in non-commodity applications can arise based on effective outreach and engagement with broader audience. Cotton...

Fentanyl Decontamination Features FiberTect Nonwoven Wipe

Seshadri Ramkumar, Professor, Texas Tech University, USALatest LEXIPOL series featured Texas Tech’s FiberTect as an important component in decontaminating synthetic opioids. FiberTect is gaining...