| American retailers buy less Euro brands |
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| Sunday, 02 March 2008 | |
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American retailers are cutting back on their European buys and dropping labels due to the weak dollar.
U.S. retailers are feeling the economic pinch and are well aware the situation could yet worsen. With a downturn in manufacturing and signs of increasing inflation in retailers are keeping a close eye on Wall Street to try to gauge where prices might be headed. While major department store chains can slightly offset the impact of the weakening dollar via currency hedging, smaller independents don't have such financial muscle.
Furthermore, American designers who source European fabrics have seen rising costs. Some are trying to absorb a portion of those increased costs to be more competitive with their European counterparts and often use that sacrifice as a selling point with stores. In an effort to keep their customers, buyers are searching for classic pieces that won't look dated after a few seasons or sourcing special items that justify a higher price tag, according to Women's Wear Daily. |
