Fast fashion woes
The Australian Financial Review published interesting statistics about the fast fashion segment in Australia. Three global fast fashion chains (H&M, Uniqlo and Zara) generate about $1 billion annually in Australia, but pre-store sales in the segment have dropped dramatically. If the AFR figures are to be believed, H&M per store sales dropped by about 25% (6% total sales drop while store numbers grew from 23 to 32). AFR also mentioned Dotti pre-store sales dropped by around 9% and store closures by Forever 21, GAP and Top Shop. Clearly, the market is undergoing a major reshuffle. Some try to blame it on e-commerce, but it looks more like just a simple case of market overcrowding.