ASDA is reducing payments to suppliers on a quarter of its clothing orders. Sofie Willmott, Lead Analyst at GlobalData, a leading data and analytics company, offers her view on this news:
“As the fourth biggest player in the UK clothing market in 2019 with 3.4% market share, ASDA is cutting back on the cost of stock that it knows will be difficult to sell in the current climate. Essential retailers that have remained open during the UK lockdown are not immune from the slump in demand for clothing & footwear items.
“Although shoppers may pick up some more essential clothing products such as baby and childrenswear while doing their grocery shop, most consumers will be solely focused on food. ASDA has joined the many other clothing specialists that are cutting back on orders and payments where possible, as clothing & footwear spend is set to fall 26.1% this year resulting in spring summer stock requirements being trimmed right back.”