Newsletter: February 2007  

Textile & Apparel Market at a Glance

Canada : Significant Global Importer of Apparel 

Canada's robust retail market continued strong in November 2006, with total sales increasing 4.7 percent.  Apparel retail sales reached 1.419 billion Canadian dollars, which was down from 1.459 billion Canadian dollars in October but reflected 4.5 percent year-on-year growth.  

November 2006 sales growth in apparel was the slowest since July, which may suggest the robust activity of the last few months is slowing.  Year-to-date apparel retail sales totaled 15.744 billion Canadian dollars, reflecting 6.3 percent year-on-year growth. Canada's apparel retail sales have advanced for four consecutive years, making the country a significant global importer of apparel. 

Ireland: Apparel Retail Sales Continue to Lead Old Europe 

Ireland, the "tiger" of Europe, is continuing to lead Old Europe in the growth of apparel retail sales.  In November 2006, retail sales of apparel and footwear reached an all-time record for a month other than December. 

Retail sales also increased 13.4 percent from year-ago levels and represented the strongest month-on-month growth in two years.  Apparel retail sales have expanded in 23 out of the past 24 months. 

Baltic : Red Hot In Textile and Apparel Retail Sales

The Baltic region of Europe remains red hot in the area of textile and apparel retail sales.  Retail sales of textiles, apparel, footwear and leather goods reached an all-time monthly record in November and also reflected 62.5 percent year-on-year growth.  This marked the 23rd consecutive month of strong year-on-year growth. 

In Latvia, November retail sales of textiles and apparel did not reach a record but posted 44.6 percent year-on-year growth, and its 2006 monthly retail sales of apparel doubled its growth rate from the previous year.  In Lithuania, retail sales of textiles, apparel, footwear and leather goods surged 31.1 percent in November, which marked the sixth consecutive month of 30 percent or more growth.

Latin America : Phenomenal Growth in Textile and Apparel Retail Sales 

Latin America has been overlooked in the global growth story of 2006. Phenomenal growth in textile and apparel retail sales was evident across several of the countries in the region.  In Venezuela, record oil revenue has unleashed a spending spree that has clearly benefited the country's retail sector. 

Venezuela's retail sales of textiles, apparel, shoes and leather experienced 66.2 percent year-on-year growth in September, pushing sales volume to an all-time record for the month.  Total retail offtake of textiles and apparel in September 2006 was over three times the volume of September 2003; and since March, retail sales have grown from 25 percent year-to-year to 77.1 percent.  Monthly sales have expanded for three consecutive years. 

This prosperity is benefiting the country's small textile and apparel sector.  In December, Venezuela placed an import duty ranging from 15 to 35 percent on some apparel items, along with furniture and other products.  The duty is designed to boost the consumption of Venezuelan-made products.  Domestic textile production averaged a 3.3 percent year-on-year monthly increase in output during the January through September time period, while apparel production experienced a 3.9 percent average monthly expansion.  Output in both sectors remains substantially behind the level of production that occurred in 1997/98.   Much of the industry is focused on man-made fiber products.  Annual cotton consumption appears to be near 40,000 to 50,000 bales. 

Colombia's retail sales are also booming.  October total retail sales experienced 17.3 percent year-on-year growth, and year-to-date sales are up 14 percent.  Domestic consumer confidence is expanding, along with a drop in unemployment; this along with wage growth is boosting sales.   

Apparel retail sales increased 15.9 percent in October, marking the 34th consecutive month of growth, and year-to-date sales are up 12.9 percent.  Textile retail sales soared 23.7 percent in October, and year-to-date sales are up 8.2 percent.  This growth has been a major boost to Colombia's textile and apparel sector.

 US Apparel Retailers Post Disappointing Sales for December 

Wal-Mart, the king of retailers, reported a gain of 1.6 percent in sales from stores open at least a year. Target, Wal-Mart’s chief competitor, had a much better month as same store sales rose 4.1 percent. Other mass merchants had relatively flat month with the sole exception of Costco, which reported a 9 percent gain in same store sales.  

The nation’s largest retailing chain, Gap Inc., reported another dismal month as same store sales decreased 8 percent. Its lower priced apparel chain, Old Navy, fared no better, posting a drop of 10 percent in same store sales.

In the youth apparel market, American Eagle continued its impressive run, as same store sales hit 13 percent. Abercrombie & Fitch, posted its third consecutive losing month with same stores sales decreasing 0.1 percent.  

Women’s apparel retailers posted a mixed month as Cache, Cato and the Dress Barn all reported positive numbers while Cato and Chico each reported decreasing same store sales.

The children’s apparel channel was dominated by Gymboree’s double-digit gain of 15 percent versus a year ago. The Children’s Palace reported a 5 percent gain in same store sales.

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