2009 Retrospective
The economic downturn sent many in the industry into a defensive position over the past year as retailers and manufacturers tightened inventories and everyone trimmed back payrolls. Apparel and textile imports dropped 15 percent in the first 10 months of the year, and manufacturing employment dropped 14.3 percent between October 2008 and October 2009. The retail real estate market saw vacancies rise and rents fall.
Still, there were opportunities for growth. TJX Companies had a banner year as its two discount chains, TJ Maxx and Marshalls, took advantage of the available merchandise to tout its deep discounts on designer brands. The Buckle, the Nebraska-based teen retailer, continued to see strong sales for much of the year. And tony Rodeo Drive saw steady rents and only a few vacancies.
There are also signs of recovery in the coming months. Spaces are filling up on Los Angeles’ retail hot spot Robertson Boulevard. And analysts are encouraged by The Wet Seal’s efforts to turn its retail fortunes around.
The editors of California Apparel News took a look at a few key sectors—employment, imports, real estate and retail sales—to chart 2009’s economic impact on the apparel industry.
