International financial crisis triggered by the real economy in the doldrums of recession and consumer confidence apparel retail market in Europe and America led to a recession. At present, in addition to the low-price strategy of Wal-Mart and a handful of retailers also able to maintain growth, most of the other retailers have been affected to varying degrees.

First, the pessimism on the economy is expected to lead to a substantial reduction in consumer spending.

   United States: According to the U.S. Department of Commerce statistics, the U.S. personal spending in October fell 1.0 percent from the previous month, in September 2001 for the biggest drop since; retail sales fell 2.8 percent, the biggest drop in history, including clothing stores (not including supermarkets, department stores etc.) 1.4% decline in retail sales.

   MasterCard advisory body in accordance with the investigation report, due to consumers on the overall economy and the employment market, “they worry,” the first two weeks of November, the United States market of goods and clothing sales fell 19 percent year-on-year. Women which fell 19.7 percent, 20.5 percent of men’s decline. In nine, in October, clothing sales fell 5.5 percent year-on-year and 12.2%.

   According to Goldman Sachs – International Council of Shopping Centers released by the U.S. chain of 37 large-scale business survey results, in November this year, 37 retailers same-store sales decline of 2.7%, the statistics the last 40 years the creation of the worst results. Excluding Wal-Mart, sales rose 7.7 percent plunge even more.

   The euro zone: It is the EU’s official statistics, the third quarter of 15 euro zone household spending fell 0.2 percent the previous quarter for the biggest drop since 1995. In October, the EU 27 countries retail sales grew 0.3 percent last month, but the same period last year dropped 0.8 percent; Eurozone retail sales in 15 countries declined 0.8 percent last month, more than the same period last year dropped 2.1 percent for the second consecutive monthly decline .

   Britain: The British Retail Association, the British retail sales in November fell 2.6 percent, declining for two consecutive months. According to an advisory body Verdict expected next year outside the United Kingdom in addition to supermarket retail sales will decline, major retailers, the profit will be reduced by about 5.3 billion U.S. dollars.

   Japan: Japanese Economy, Trade and Industry released data showing Japan’s retail sales in October fell 0.6 percent for the second consecutive monthly decline; large-scale retailers fell 4.3 percent for the third consecutive decline in seven months. Japan Chain Stores Association, according to statistics, in October, supermarket sales in Japan decreased by 1.6% year-on-year, fell for three consecutive months, including apparel products fell sharply by 10.8%, has been 34 months less than the level a year earlier.

   Second, consumers turn to “cheap discounted merchandise,” The trend is clearly, retailers stepped up discounting, low-priced supermarket become beneficiaries.

   Clothing merchandise is subject to consumer confidence and savings products tend to have significant impact. As consumers cut back on purchases of high-priced commodities, in turn increase the low-priced daily necessities and discounted goods spending, high-end clothing retailer in Europe and the United States affected by the larger.

   Known for a low price to the world’s largest retailer Wal-Mart is one of the few beneficiaries of one of its U.S. retail stores in November same-store sales growth of 3.4%. The price level slightly higher than Wal-Mart, non-essential items (such as fashion and home goods) sales accounted for a larger share of the United States’s second-largest supermarket Target, 11 same-store sales decreased by 10.4%.

   Compared with the low-priced stores, upscale department stores in greater impact. In November, the United States in major department store sales fell sharply. JC Penney same-store sales declined 11.9%, Macy’s sales declined 13.3%, Kohl’s dropped 17.5%, Dillard’s has dropped by 9%.

   Those who insist on not discount or discount retailers with lower intensity also tasted the bitter fruit. Young people such as the United States clothing retailer Abercrombie & Fitch to maintain the brand image, did not take price promotions strategy, in November same-store sales plummeted 28 percent.

   In the UK market, the first and second largest department store Marks & Spencer and Debenhams have early access to the discount season, 20 percent lower prices to attract customers. British low-cost clothing retailer Primark this year’s 21 percent sales growth, profit growth of 17 percent, becoming the United Kingdom one of the few bright spots clothing sales.

Third, the closure of bankrupt retailers and shops to close a substantial increase.
 
   According to the U.S. International Council of Shopping Centers estimated that this year’s U.S. retail outlets will be closed around 6000, soared 25 percent over the previous year. Involvement in the economic downturn, closing down bankrupt a substantial increase in the number of retailers. According to incomplete statistics, Europe and the United States this year has been more than ten large apparel, home retailers, filed for bankruptcy protection, including the large U.S. department store chain Mervyns, the U.S. clothing retailer Goody’s Family Clothing, the UK Group of large supermarket chains Woolworths, Veteran British fashion company Hardy Amies, the western United States Clothing retailer BTWW, American casual wear retailer Steve & Barry’s, the U.S. women’s retailer B Moss, U.S. imports of home supplies chain Bombay, the U.S. home furnishings retailer Linens’ N Things , the United States, such as footwear chain Shoe Pavilion.

   At the same time, those who have not yet plunged into bankruptcy of enterprises have also contracted Front, a large number of the closure of poorly performing stores, reduce capital expenditures, delays in plans to open new stores. Many large U.S. apparel, apparel, home retailers, including Kmart stores, Home Depot stores, Macy’s, Bloomingdale’s, The Dillard’s, The Gap, Talbots, Ann Taylor, Charming Shoppes, Eddie Bauer, Pacific Sunwear, Cache, Disney, Kirkland’s, Zales, Foot Locker, have announced plans to close shop.

Fourth, retailers to pressure suppliers transfer.

   Due to sluggish sales, inventory increases, some retailers began to add new suppliers to divert the pressure of harsh terms. For example, Britain’s largest supermarket Tesco Tesco since December 1 this year from its global non-food supplier payment terms from 30 days to 60 days, with a view to obtaining the additional cash flow, which will greatly increase the financial pressure on suppliers. Some retailers (such as the British low-cost retailer Peacocks) suppliers to reduce the amount of credit insurance, and increased the risk of supplier receivables.