Home Southern Africa Clothing industry in South Africa is in a spot; closures surge

Clothing industry in South Africa is in a spot; closures surge

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(3 minutes read)

·        The Covid-19 pandemic and the subsequent global recession
have put the textile industry in South Africa in a spot,

·        Some of the textile shops are complaining that their sales
have been dropped by 50% or so, without any ray of hope of restoring
the demand once the Covid-19 backlash subsides.

The Covid-19 pandemic and the subsequent global recession have put the
textile industry in South Africa in a spot, according to some experts.
Initially in the 21-day lockdown, clothing retail was not regarded as
part of the essential goods and services residents would have access
to.  Later, baby clothes were included in the list of essential goods.
In the next stage of Covid-19 crisis management involving, lifting of
partial lockdown, there are expectations for the definition of
essential goods to be expanded.

Experts feel that taking into account the pent up demand for clothing
among the public, there can be a rush to the shops to buy clothing
items at least for a couple of days. However, curtailed spending
power, induced among others, by retrenchments and closure of small
businesses, may cast their shadows on all fast moving consumer goods
including textiles. This would lead to closure of more textile  shops.
Some of the textile shops are complaining that their sales have been
dropped by 50% or so, without any ray of hope of restoring the demand
once the Covid-19 backlash subsides.

While some retailers in anticipation of the bad days are scaling down
their operations or even closing down the shops, rendering many
workers unemployed, others are adopting a “wait and watch” approach.
If the going is tough, many of them admit that they would not be able
to continue in business. Closure in that case becomes a natural
corollary.

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