Why do the clothes so badly – Elsevier

                 Clothing stores saw their operating profit in the period from 2010 to 2013 decrease significantly. They were hit a lot harder than retail as a whole.
             

Figures from the Central Bureau for Statistics (CBS) showed Monday that the operating clothing stores fell by over 500 million euro in 2010 to less than 150 million euros 2013. That is a decrease of 70 percent

The retail sector during the economic slump anyway heavy:. the operating profit of the sector as a whole declined by 16 percent.

Cost

Why do proper clothes so bad? CBS reported that sales of clothing stores in this period declined much faster than operating expenses. Turnover was 700 million euros lower (7.2 percent), cost EUR 300 million (3.4 percent).

Especially the personnel and accommodation were operating from clothing not down. These two items together make 30 percent of the total cost of stores that sell clothing. The housing costs rose by nearly 7 percent, personnel costs by more than 1.5 percent.

Smartphone

But there’s more to it. Retail Expert Cor Molenaar tells elsevier.nl that clothing is an emotional purchase. “Food you always need but buy clothes we set out.” Moreover, it is increasingly becoming a “ disposable product . “We want to do often something new, but would rather not give too much money on it.”

In addition, clothing is important competitors at Apple and Samsung. “The money we have to spend, not rising, but we do want to have more and more products. Things like a smartphone belong more to our vital necessity. We just can not live without it and would rather give our money on, “says Miller.

Collection

Can clothes for themselves what to do to turn the tide times? According to Miller is ‘very difficult’. “The cost of a shop are simply high.” What would help is if changing clothes faster collection. That many stores not yet, says the retail expert

A collection may linger up to three months, such as H & amp;. M and Zara already do. If it is not sold in stores, the clothing should be sold in other ways. In the United States this is already happening, but not here. “

stores shorter hang their clothes in the store, the stores do not need such large buildings, so the rental costs go down. “And it’s more exciting for the consumer.”

It would also be within the clothing the supply chain ‘should be shorter. The popular big chains produce their clothes themselves, but also other shops should be able to buy much more direct. “They should just get off directly at the manufacturer, which is much faster and cheaper.”