Fashion Retailers Are Facing More Challenges In The Future.

Facing the challenges brought by global geopolitical and economic shocks and changes in consumer habits,

Brand and traditional retailers can not escape market shock.

Over the past few years, tens of thousands of retail outlets have been closed in New York, most of which are replaced by the more powerful American chain stores, but now they are in an impasse, and many chains are hard to maintain. Even if the stores are empty, the owners will not be willing to reduce their rentals.

According to the world clothing shoes and hats net, Fifth Avenue near Trumpt tower or extending from the middle of New York to the Eastern Avenue of Madison, has even been luxurious fashion such as Ralph Lauren and Marc Jacobs.

The most expensive retail area in the world, such as Bleecker street, which stores occupy, most stores are idle.

According to data from Fung Global Retail & Technology, a retail think-tank, since January 1st this year, the total number of retail businesses in the United States has closed more than 6700, exceeding 6163 in the financial crisis in 2008, creating a new record.

Among the retail businesses announcing the large-scale customs shop, there are many large luxury fashion retailers such as Guess, Gap, Banana Republic, Michael Kors, Bebe and The Limited.

More than 300 retailers have filed for bankruptcy in the first half of this year, according to BankruptcyData, an enterprise bankruptcy data website.

Among the retailers who applied for bankruptcy, a total of 21 came from the field of fashion retailing. The latest ones were Italy's old hat maker Borsalino, American Jewelry retailer Charming Charlie and the world's largest wedding retailer Alfred Angelo.

It is noteworthy that 70% of the 21 fashion retailers who submitted bankruptcy applications came from the United States.

According to the analysis, the fashionable retailers who apply for bankruptcy are generally exposed to the pressure of rapid development of fast fashion brands. They also have to tolerate the retail giants like WAL-MART and Target to carve up nearly saturated fashion retailers.

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With the recent efforts of Amazon in the fashion industry, the challenges for fashion retailers will be even more severe.

According to FTI Consulting, a business consultancy, with more and more consumers away from physical stores, by 2027, AOL retail sales will exceed US $1 trillion, far more than US $445 billion this year.

The study also showed that online shopping accounted for 12% of the total retail sales in the United States in the past year, accounting for 50% of the overall sales growth.

FTI said that by 2027, Amazon's share of total online sales will rise to 53% from 34% in 2016.

This means that Amazon will account for nearly 12% of retail sales in the United States, which is currently 4%.

However, some analysts believe that Amazon is the chief culprit of the conclusion may be too simple, a large number of retailers bankrupt shop behind the physical retail environment and the electricity supplier network failed to run well.

In a book called Vanishing New York, author Jeremiah Moss points out that rents rather than Amazon kill these retailers.

He stressed that businesses can not coexist with the Internet, but the premise is that reasonable rent is needed.

At present, most of the owners are no longer the individual investors in the past, but are mainly institutional investors and hedge funds. All profit oriented tenant are unwilling to lower the rent to match the current depressed retail environment in the United States.

Even if landlords are willing to provide competitive leasing contracts, they are only two to five years, rather than ten years of practice.

As a result, small retailers are being run by investors, and the problem of idle stores in the consumption centers is becoming more and more prominent.

According to the latest report, 12% of the stores in the upper west side of New York are all empty and rented.

From the commercial point of view, the crisis of commercial real estate has led to the emergence of a new wave of integration.

Earlier this month, French Unibail-Rodamco and Australia Westfield agreed to merge at $24 billion 700 million to become the second largest shopping mall in the world.

However, the high rental prices did not result in idle shops.

Some analysts believe that the market may have reached a turning point.

Robin Zendell, a retail real estate agent in New York, said: "like Hunger Games.

If you are smart and innovative, you will be able to survive in this market.

Shopping malls and retailers have to learn to listen to the voice of a new generation of consumers.

Robin Zendell takes Everlane, an Internet fashion retailer, as an example. The brand is planning to pform sales of e-commerce channels into offline retail stores, while online shopping can meet people's needs, but rarely affects what people want.

She added, "retailers still need to interact with people, but in different ways, modern consumers are very smart.

Past stores are for sale only, but now they are more for marketing.

The following is a collection of fashion brands and retailers who have filed for bankruptcy protection in the past year:

Borsalino, an old hat maker in Italy, declared bankruptcy in December 18th.

A petition that took over the retailer's Haeres Equita last year in September to rescue bankruptcy through an investment fund has been rejected.

At present, the brand shop is still undertaking the production of new orders, but the future of the 135 employees remains unclear.

According to court documents, US jewellery retailer Charming Charlie has assets ranging from $50 million to $100 million, compared with liabilities ranging from $1 to $500 million.

Rating agency, S & P said that before filing for bankruptcy protection, Houston had a regular loan of $150 million and a $50 million asset mortgage loan.

Since the beginning of this year, the retailer has closed 100 stores while reducing headquarters staff.

The US youth fashion retailer Styles For Less Inc has submitted bankruptcy proceedings to the court for the eleventh chapter of bankruptcy application, so as to avoid further impact of its Internet business on the Internet.

It is reported that Styles For Less has more than 100 stores in shopping malls and stores in California, Nevada, Utah, Arizona and Florida.

It is reported that Sears Sears's branch in Canada has submitted an application for bankruptcy to the local high court.

According to the company's creditors arrangement, the court agreed that SearsCanada could seek buyers to acquire their remaining assets.

At present, Sears has 195 stores in Canada and employs 11 thousand and 200 people.

According to documents submitted by Aerosoles, a female shoe retailer, in the bankruptcy court of Delaware, US, its liabilities ranged from $100 million to $500 million.

As part of the restructuring plan, Aerosoles will significantly reduce the number of stores and focus on e-commerce.

According to the data, Aerosoles has more than 300 stores in the global region including China.

It is reported that Perfumania, an American perfume retailer, will reorganize its assets mainly in retail business, including most of the 226 stores located in shopping malls.

The group said its business will continue to operate as usual, and it will speed up closing the loss stores and increasing investment in e-commerce business.

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Alfred Angelo Bridal, the world's largest bridal retailer, has closed most of its stores in the United States.

The company is headquartered in Delray Beach, Florida, and has more than 60 stores in the United States. It also has stores in the Caribbean, Mexico, Central America, South America and Hongkong.

The Brazil holding group J&F plans to sell the holding rights of its Havaianas Alpargatas, a brand name manufacturer, at a price of about $1 billion 100 million at Brazil 3 billion 500 million.

Under the agreement, Cambuhy and Itausa will jointly own 86% of Alpargatas's controlling interest.

The US Cowboy brand True Religion Apparel is undergoing restructuring and restructuring after filing for bankruptcy protection, and its business will not be affected.

True Religion has a total debt of $535 million and assets of only $243 million. After rectification, its debt will be reduced by US $350 million. At present, we have received $60 million from Citizens Banks.

The US youth clothing retailer Papaya Clothing, headquartered in California, has 80 entity shops and approximately 1300 employees.

As for the reasons for bankruptcy, the group's explanation is: first, the burden of overload caused by over expansion. Two, more and more consumers are pferred to online shopping, resulting in a sharp decline in store traffic.

Compared with other similar brands, Topshop's expansion rate in Australia is obviously lagging behind.

Before Austradia applied for voluntary management, the brand altogether opened 9 independent stores in Australia and opened 17 franchised stores in the form of exclusive cooperation with department store Myer.

According to information submitted by Rue 21 to the bankruptcy court, there are 1179 stores in the United States, and the valuation of assets and liabilities ranges from $1 billion to $10 billion.

Wells Fargo was listed as the largest unsecured creditor in the bankruptcy application, with a claim amount of up to US $239 million, which will expire in 2021.

Jaeger, a long-term loss maker, has tried to sell the company at 30 million pounds and has hired a well-known restructuring consulting finance company, AlixPartners LLP, as a consultant to apply for bankruptcy protection.

At present, mysterious buyers have bought about 7 million of Jaeger's debt.

Agent Provocateur, a high-end underwear brand, has filed a bankruptcy petition in the United States, with assets ranging from $1 million to $10 million, with liabilities ranging from $10 million to $50 million.

The company aims to maintain its US regional business through bankruptcy protection and sell its 12 US stores to Four Holdings group.

Payless Shoesource, an American footwear chain, filed for bankruptcy protection in the US court in April this year to restructure its North American business and Hongkong based logistics and supply chain businesses.

The company will close nearly 400 branches in the United States and Puerto Rico, and plan to cut half of its debt and invest in online businesses.

According to the latest news from the British media, the designer Karen Millen has invested in a Mauritius plan designed to avoid tax. However, it was questioned by the British tax authorities and asked Karen Millen to pay 6 million of the tax and fees, which was affected by the continuing downturn in the brand management situation. Karen Millen was unable to bear the cost and announced bankruptcy recently.

Gordman's Stores, a clothing and household goods retailer, operates 106 stores in 22 states of the United States, and has signed a clearing sale agreement for its retail and distribution centers and other assets.

Meanwhile, stores will open as usual.

Because the product of American designer brand BCBG Max Azria can not keep up with the speed and excessive expansion of consumer demand, it resulted in a loss of $10 million in fiscal year 2016, while closing 120 poorly managed stores.

According to the court documents submitted by Wet Seal, after clearing 177 unprofitable stores and online businesses, the total amount of liquidation amounted to more than $15 million, of which the sale of fixtures and furniture at headquarters and most stores increased its revenue by $607 thousand.

The Limited, an American clothing retailer, signed an asset purchase agreement with Affiliated Companies, a private equity firms Sycamore Partners, to sell its intellectual property and related assets after filing the bankruptcy petition.

Previously, The Limited has closed all its 250 stores and dismissed more than 4000 employees.

New York designer Bibhu Mohapatra said its brand of the same name would continue to operate after filing for bankruptcy. He believed that the company's attraction to investors would be greatly increased after debt restructuring.

In February this year, the brand took part in the fashion week of New York and released the autumn 2017 series.

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