“Stock compensation for suppliers is necessary”

In a joint press release, branch organizations Modint and FGHS express their support for suppliers of clothing, interior textiles, shoes and sports goods. For this branch of retail, too, stores should open on March 3, and industry associations say there are plenty of ways to do that responsibly.

In addition to the opening of the stores on March 3, Modint and FGHS insist on the importance of more extensive compensation for companies that supply stores. “Suppliers have now pre-financed periods of up to more than a year. At the moment, they also see orders for next seasons to the beginning of 2022 decline, as retailers have no money to buy and will sell collections from 2020 at a loss. Profits in retail evaporate and with it the opportunities to invest in subsequent seasons. Not only now, but also in the longer term, this has enormous consequences for all parties in the chain ”, according to the press release.

The stock allowance for closed retail trade (VGD) should be extended to suppliers, Modint and FGHS argue. “As long as nothing is sold to consumers, suppliers cannot extradite to retailers and cannot be paid.” There is no longer any liquidity in the sector, the industry organizations said in the message.

There is also a need to seriously consider refinancing the chain, so that it can get going again when the stores are reopened. Simple but effective financing should be set up for this.

Image: Aygin Kolaei for FashionUnited

Source: fashionunited.nl by fashionunited.nl.

*The article has been translated based on the content of fashionunited.nl by fashionunited.nl. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!