Zara owner to close up to 1,200 fashion stores around the world

Inditex seeks to boost online retailing as coronavirus causes 44% sales slump

The owner of Zara will close as many as 1,200 stores around the world as the clothing retailer tries to boost online sales during the chaos wrought by the Covid-19 pandemic.

Inditex said it would “absorb” between 1,000 and 1,200 mainly smaller stores, with losses concentrated among older shops from brands other than Zara. The Spanish company’s other brands include Bershka, Pull & Bear and Massimo Dutti.

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Anger at huge shareholder payout as US chain Kohl’s cancels $150m in orders

Retailer paid $109m in dividends just weeks after cancelling clothing orders, leaving suppliers in Bangladesh facing financial crisis

Kohl’s, one of the US’s largest clothing retailers, cancelled millions of dollars worth of existing orders from Bangladeshi and Korean garment factories just weeks before paying out $109m (£85m) in dividends to shareholders, the Guardian can reveal.

The company cancelled orders of clothing worth approximately $100m from Korea and $50m from Bangaldeshi factories after the Covid-19 pandemic struck, and refused petitions from suppliers asking for the option to renegotiate payments. 

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Silly Billy: what the Ikea bookcase tells us about the true cost of fast furniture

A Billy bookcase is made every three seconds. But with a third of people admitting to throwing away furniture that they could have sold or donated, does the cheap furniture boom have a heavy environmental price?

Jo Jackson remembers the day when it was clear that nothing was going to be the same for a while. It was mid-March and Made.com, an online purveyor of millennial-friendly furniture, had big plans for growth in the year of its 10th anniversary.

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Ikea France to face trial over claims it spied on staff and customers

Two former chief executives and four police officials among 15 individuals charged in case

Ikea’s French subsidiary and 15 individuals including former executives and police officials are to go on trial on charges of spying on employees and customers, prosecutors have announced.

Two former Ikea France CEOs are among those charged in a case dating back to 2012 when the Swedish-based home furnishings firm was accused of paying for illegal access to police files.

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Big retailers move to enhanced ‘click and collect’ shopping as coronavirus shutdown endures

Myer launches ‘pop-up’ collection booths as online sales surge while luxury brand stores reopen their doors

Retail giants are set to rely more heavily on click and collect sales even as lockdown restrictions are eased, with the sector’s peak body cautioning against a rush to fully reopen bricks and mortar stores.

Paul Zahra, Australian Retailers Association (ARA) CEO, believes the shift towards delivery and kerbside pickup will leave a “legacy” in Australians’ shopping habits, and said one “fundamentally positive” impact of the pandemic has been that retailers traditionally reluctant to move online have now come on board.

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The key areas to look at in easing the UK coronavirus lockdown

From schools to shops, with jobs at risk, the government must balance the interests of economy and public safety

As the prime minister, Boris Johnson, heads back to Downing Street, he faces calls from Labour to be clearer about how Britain might start lifting the coronavirus lockdown, now entering its fifth week. On Sunday, the foreign secretary and first secretary of state, Dominic Raab, warned the outbreak remained at a “delicate and dangerous” stage and said it was irresponsible to speculate about steps to modify the rules underpinning government’s “stay home, protect the NHS, save lives” strategy.

More than 20,000 people have died from Covid-19 in NHS hospitals and thousands more in care homes. But there are growing concerns about the economic impact of lockdown. Gerard Lyons, Johnson’s economics adviser when he was London mayor, warned on Sunday the UK could be the hardest-hit western economy if it does not unlock soon. The Labour leader, Keir Starmer, also called on ministers to start talking to teachers, businesses, trade unions and town hall leaders and open “honest conversations with the public about what new arrangements might look like”. Unions insist worker safety must not be compromised by any changes and questions remain about public appetite for risking a new peak of contagion, but plans to modify restrictions are starting to emerge.

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What will coronavirus mean for the British economy?

As the UK faces what may be its worst ever recession, we begin a monthly series exploring the financial shock to business and living standards

One month after a national lockdown was declared in an attempt to limit the spread of Covid-19, it is clear that Britain is heading for the deepest recession in living memory.

Boris Johnson’s government launched unprecedented restrictions on 23 March, telling the British public that they must stay at home and bringing life as the nation knew it to an abrupt halt.

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Coronavirus will cause ‘lasting changes’ to shopping habits, says Unilever boss

Alan Jope predicts continued growth in online shopping and continued higher sales of cleaning products

The coronavirus pandemic will trigger “lasting changes” in shopping behaviour, according to one of the world’s biggest manufacturers of grocery brands.

Unilever’s chief executive, Alan Jope, said the health crisis would accelerate the growth of online food shopping. He also predicted a permanent increase in demand for soap and other cleaning supplies as improved hygiene became a priority for households.

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Suppliers ration stocks of tinned tomatoes after surge in demand

Supermarkets told to ‘calm the fever’ as UK sales rise more than 30% during coronavirus crisis

Tinned tomato suppliers are rationing stocks to supermarkets after demand in the UK surged more than 30% and threatened to use up supplies ahead of this year’s harvest.

Supermarkets and convenience store groups are understood to be jockeying for supplies as families continue to buy more tinned foods than usual after the closure of schools and restaurants forced them to cook more meals at home.

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Arcadia Group cancels ‘over £100m’ of orders as garment industry faces ruin

As owner of brands including Topshop and Dorothy Perkins cancels unshipped orders, thousands will be left without income, warn rights groups

The Arcadia Group, which owns brands including Topshop, Dorothy Perkins and Miss Selfridge, is estimated to have cancelled in excess of £100m of existing clothing orders worldwide from suppliers in some of the world’s poorest countries as the global garment sector faces ruin.

According to data from the Bangladesh Garments and Manufacturing Association (BGMEA), the Arcadia Group has cancelled £9m of orders in Bangladesh alone.

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Milk floats ride to the rescue of locked-down British households

The once ubiquitous electric float had seen its power wane. Then came the pandemic

The humble milkman – a regular sight on most British streets throughout the 20th century – was almost consigned to the history books by the rise of the supermarkets.

But now, thanks to the coronavirus pandemic, these dairy deliverers on their electric floats are busier than ever as they try to keep up with newfound demand for their services.

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Primark announces wage fund for garment workers

Pledge comes in response to claims that order cancellations to minimise Covid-19 losses have hurt millions of workers in the developing world

Primark, one of the UK’s most popular retailers, has announced it will create a fund to help pay the wages of the millions of garment workers affected by its decision to cancel tens of millions of pounds worth of clothing orders from factories in developing countries across the world.

The pledge followed sustained criticism of the fashion retailer after data from the Bangladeshi and Garment Exporters Association (BGMEA) revealed it had cancelled all orders already placed with suppliers.

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Long queues as Australian supermarkets limit customers to avoid overcrowding in lead up to Easter

Social media posts have shown lines stretching hundreds of meters as Coles, Woolworths and IGA enforce physical distancing

Long lines have formed outside supermarkets after Coles, Woolworths and IGA began limiting the number of customers inside stores in a bid to allow physical distancing and keep flattening the curve of Covid-19 infections during the Easter rush.

The Thursday before Easter is traditionally one of the busiest days for supermarkets, as people stock up for the weekend.

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Panic-buyers urged to ‘be responsible and think of others’ amid Covid-19 pandemic – video

The environment secretary, George Eustice, has urged panic-buyers to only purchase what they need in order to not make shopping difficult for frontline workers, such as NHS staff. Standing in for Boris Johnson on Saturday at the government’s daily briefing, he said: 'Be responsible when you shop and think of others. Buying more than you need means others may be left without'

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Amazon to suspend non-essential shipments to UK and US warehouses

The company is prioritising five categories of goods which it classifies as essential products

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  • Online retail giant Amazon is stopping sellers from sending non-essential items to its UK and US warehouses until 5 April, to make space for vital items needed by its customers during the coronavirus outbreak.

    Amazon wrote to its third-party sellers, some of whom use the company’s logistics to store and dispatch their products, to inform them that stocks of medical supplies and certain household items are running low due to increased demand from online shoppers.

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    Tesco withdraws Christmas cards from sale after forced labour claims

    Supermarket halts production in China after six-year-old girl finds plea for help inside card

    Tesco says it has suspended production at a factory in China alleged to have forced foreign prisoners to help make charity Christmas cards and also withdrawn them from sale.

    The allegations came to light after the Sunday Times reported that Florence Widdicombe, aged six, from Tooting, south London, opened a box of charity Christmas cards from the supermarket and discovered a plea for help inside one of them.

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    Burberry and Cathay Pacific profits dented by Hong Kong protests

    Retailer and airline report disappointing figures as anti-government rallies take toll

    Two companies with substantial interests in Hong Kong have announced figures that underline the damage being inflicted on the economy by the continuing anti-government protests.

    Burberry said its sales were down more than 10% and it had slashed £14m off the value of its 12 stores in the territory.

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    It’s time to boycott any company doing business in Xinjiang | Michael Caster

    Forced labour in China’s internment camps taints the supply chains of many western companies. We need to take action

    Any western company doing business in Xinjiang should consider their supply chains tainted by forced labour drawn from internment camps. Hardly a drop in the ocean of the vast global economy, this involves companies such as Ikea, H&M, Volkswagen and Siemens.

    This month, the United States banned the import of products made by a firm in Xinjiang over its use of forced labour. It also blacklisted 28 Chinese entities for their role in the repression of Uighurs and issued visa restrictions on key Chinese officials. Following suit, two major Australian companies have now also announced they are ending partnership with their cotton supplier in Xinjiang.

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    Forever 21, global fast fashion retailer, files for bankruptcy

    Struggling empire is the latest bricks-and-mortar outfit to suffer as shopping moves online

    Fashion retailer Forever 21 has filed for Chapter 11 bankruptcy, joining a growing list of bricks-and-mortar players who have failed to navigate the shift towards online shopping.

    Since the start of 2017, more than 20 US retailers, including Sears Holdings Corp and Toys ‘R’ Us, have filed for bankruptcy as more customers shift to online retailers such as Amazon.

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    Opening-day frenzy at first Costco store in China – video

    The US retailer Costco has said it will limit the number of shoppers at its first store in China after overcrowding forced it to shut early on the opening day. Large crowds caused traffic jams as they flocked to the store in Shanghai on Tuesday, and shoppers jostled to grab products off the shelves before joining the huge queues at checkouts 

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