Challenges in Apparel Retail

The retail industry faces challenges similar to those in other industries. Over the past 10 years there has been a decline in employment mostly in the apparel industry. With our economy in a current recession spending is decreasing all over the place. With a fast-paced society and faster-paced technological changes, customers want new, different, and customized goods now retail companies have their work cut out for them.

Retail companies are constantly having to come up with ways to form the best products for the best prices with a demanding and ever-changing customer. The problems we as a nation have been facing over the past decade has not helped. Starting with September 11, 2001. After that date salaries and jobs were cut leading to more jobs overseas. Less jobs in the United States means less money circulation throughout the economy. Unfortunately this creates a vicious cycle.

The biggest problem retailers face today is the current economic situation. I see this first hand working at American Eagle Outfitters. For the past few months it has been an extreme challenge in itself to make day. According to a consulting firm, AlixPartners, "Post-Wall Street meltdown and heading into the winter holiday-shopping season, a wide majority (64%) of U.S. consumers are planning to spend less on gifts this year, tightening their belts in the face of an economic shockdown that almost half (46%) don't foresee ending for at least three years." According to Matthew Katz, head of AlixPartners’ Retail Performance Improvement Practice and a managing director with the firm, “Consumers are going to be trading-down in terms of which products they buy, in terms of how many products they buy, in terms of the brands they buy and in terms of the types of stores they shop in. Everything is under attack as consumers actively and purposefully trade down in retail channels, out of necessity in some cases and out of fear in others. Department stores and specialty retailers, we believe, will be particularly hard hit; but no retailer is immune from this tidal wave that looks to be coming as an aftershock to the Wall Street crisis.” I think as a whole the retail industry has a long way to go before it will ever be back to normal. Which is why personally, I am so glad Obama one the presidential election. Like he says "Its time for a change." :)