Talking strategy: COVID-19 is Leading to Fissures in Apparel Supply Chain Relationships

The COVID-19 pandemic has had an unprecedented impact on the world’s economies and led to fissures in apparel supply chain relationships which will take years to heal. Several Western apparel retailers have been forced to take drastic measures, and cuts in store numbers and jobs have been announced by many UK- and USA-based companies. Less widely publicised is the plight of suppliers suffering from cancellations of orders by major Western brands and retailers.

In this report, Robin Anson analyses the effect of the COVID-19 pandemic on the retail landscapes in the UK and the USA with particular reference to major fashion brands in these markets. Also, he discusses the effect of the pandemic on suppliers to major fashion brands, and highlights ways in which supply chain risks can be minimised. Companies mentioned include Arcadia Group, Asos, Boohoo, Brooks Brothers, Burberry, Harrods, JCPenney, John Lewis, Marks & Spencer (M&S), Next, PVH, Recreational Equipment Inc (REI), Ted Baker and Zalando.