The Trickle Down Effect

America is currently in a recession, which means that most individuals are losing jobs, can't afford their house, car, and other notes and are shopping less. Since many individuals are losing their jobs they are having a hard time paying mortgages or finding other jobs which can help them afford their houses. With our economy looking as if it will not get any better within the next year individuals are beginning to save there money and only purchase the necessities. Not only are jobs filing bankruptcy but so are banks. Without the help from banks many Americans feel uneasy about there purchases. When one begins to feel this way he/she tends to not purchase the items he/she used to because there is no security. With all this being said, home fashion retail is also seeing a decline because many people can't afford there home, so the last thing on their mind is furniture, clocks, etc.

Challenges in Apparel Retailing

The apparel industry is constantly changing and growing. One challenge this industry faces is the constant need to appeal to its target market. Styles are always being invented and recycled. Retailers have to figure out a way to please their customers as well as stay true to their brand.

Another challenge in retailing is to make clothing affordable for the public. For instance, Forever 21 will never produce a shirt that costs over $30.00. However Fendi may create a shirt that costs $1,000.00. If suddenly Forever 21 or Fendi decides to increase their cost of clothing, they may lose many customers.

Recently the economy has been the biggest challenge in retailing. With our economy in recession many brands are going bankrupt or losing lots of money.