AN executive with a listed retail chain has warned that the clothing industry’s woes are likely to continue unless drastic measures are put in place t
o arrest spiraling inflation.
In an interview with businessdigest, Edgars chief executive officer, Raymond Mlotshwa, said urget action was needed to curtail further losess in the sector, one of the most prominent casualties of a six-year economic recession.
“The government should do something about rising inflation otherwise if this continues by April next year the clothing industry will collapse and several companies directly or indirectly linked to the sector would also close shop,” said Mlotshwa.
He indicated that Edgars’ unit sales declined dramatically this year during the festive season, something that had not been witnessed in the previous five years, while its credit system was also under severe threat.
Earlier this year, another clothing company, Ascot Clothing, was forced to retrench close to 250 of its workforce due to the economic crisis but averted closure after being bought by businessman Delma Lupepe’s Maydeep Investments.
Added to that, in the year-end to July 2006, sales at the clothing flagship Truworths also dropped by 16% while volumes at Topics fell by 18,8%.