Clothing suppliers set for tough two years_3

Supplier margins in the beleaguered clothing retail sector face further pressure as overcapacity in production and falling sales continue to trigger price-cutting by retailers.

In its five-year forecast, retail consultancy Verdict predicted a toughening marketplace as people spend their money on home-related products rather than clothing. It said prices in the sector would continue to fall for the next two years. The middle market will be hit, but the discount sector will thrive, powered by high-quality, price-led operators such as Primark...

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