How Has The Housing Crisis Affected Home Fashion Retail?

There are some obvious reasons of how the housing crisis is affecting fashio retail: for instance, people are having to pay a much higher mortgage, thus not leaving them extra cash to go out and shop.

The other obvious reason is that, with having to pay higher mortagage, households have to pay other expenses such as food, gas, phone bills, electric, and other miscellaneous expenses.

With the economy the way it is now, people are on a saving alert. They are not spending as much, instead they are saving for other emergencies There are other necessities to worry about rather than having the latest fashion. The fashion retail stores are going to be hurting for the time being, but I believe this unfortunite circumstance will surpass sooner or later.

Furthermore, the housing crisis is having a global affect. For example, "California's housing crisis is largely of its own making-the escalating consequence of failed pulic polices that determines how communities grow." More than 2.2 million low-income homeowners and renters in urban California are paying more for housing that they should. This is where their money shortage comes to play; they don't have enough left for other necessities.

"...about 2/3 pay mire than half of their income for housing and 91% pay more than the recommended 30%." These are the low-income homeowners.

Affordable housing could be fixed because I do not believe it is too late, nor the problem is insurmountable. All there needs to be done is hard work, and everyone working together to help diminish the issue at hand.

Sources:

Rebuilding The Dream: Solving California's Affordable Housing.

http://www.lhc.ca.gov/lhcdir/165/report165.pdf

A New Solution For The Housing Crisis.

http://www.qando.net/details.aspx?Entry=7712

The challenges of apparel retail

 This graph is showing the trend in sales from '96 to '05.  As one can see, it is somewhat fluctuating, but nonetheless it is on an downhill slope.  

FASHION AND APPAREL

Current Challenges: Fashion is a forever changing scene.  It can come and go like  men.  Changing trends, short life cycle products, fluctuating seasonal demands, technology evolution and high customer churn often require that fashion retailers transform their infrastructure and processes. It is an arduous task trying to keep up with current demands and managing complex supply chains, real-time collaboration, and advanced analytics to forecast demand for short life cycle products and new product introductions; which are all critical for success.

GENERAL MERCHANDISE RETAILING

Current Challenges: Competition will always be the one factor that drives each and every businesses out there in the world.  With increasing competition, reduced brand loyalty, and shrinking margins general merchandize "retailers must enhance their supply chain efficiencies, improve customer analytics, and excel in service delivery. Other priorities include improving demand forecasting to optimize stock levels, and enhancing customer knowledge through data analysis to target the right customer segments."

With the way the economy is at this stage in life, the apparel retailers will most likely to experience a decline of shoppers for the following school year.  Many people will be laid off of work, or is working less hours; thus, limit the amount of money they can spend.  People will buy what is necessary rather than on material goods, such as in this case, clothing for back to school.  

"Most kids will be returning to school in last year's duds," Lazard Capital Markets analyst Todd Slater wrote in a report after seeing the July results from apparel retailers.

With some exceptions, the apparel industry has been plagued in recent years with the lack of must-have trends, but a challenging economy is forcing shopppers to cut back even more. The financial woes are not evaporating anytime soon. Shoppers are struggling with higher food and gas bills, tighter credit, a persistent housing slump and increasing layoffs.  With that being said, I think the apparel retailers will have to figure out some way to enhance their sales, or they will have to decrease their inventory because it'll reduce costs.  If they're not making the money they should be making, then it wouldn't make sense to have all these goods in stock, and just be sitting there.

Moreover, The New York City apparel industry has played a vital economic role in New York City and in the American industrial sector over the last century and it continues to do so today.  

"The New York City apparel industry faces great challenges as it seeks to maintain and expand its vital economic output and it stands today in a crucial state of transition." The global economic shifts is having a great impact on its daily functions.  However, the Garment Industry Development Corporation is working hard with the industry to capitalize on its strengths and to develop smart strategies for a bright and viable future.   I believe that the apparel industries in New York will be fine.  New York City has a fundamental strength,  it is the world’s “fashion capitol.”  

There are many celebrities visiting and living in that area, and they are always up for spending some cash.  It is just one of those cities that will always have visitors and spenders.  The recession will not last forever, so if the apparel retailers could just hang on through this tough time, everything should be alright again.

 Sources:

New York Apparel Industry.  [Online].  <http://www.gidc.org/index.php/aboutgidc/ny-apparel-industry-information>.

http://www.tcs.com/industries/retail/segments/Pages/default.aspx

D'Innocenzio,Anne.  Apparel retailers face tough back-to-school time. [Online]. <http://www.usatoday.com/money/economy/2008-08-07-1947799814_x.htm>