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Germany: Textile industry slipping |
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2004-11-10
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The textile retail sector expects 20,000 job losses this year according to Jürgen Dax, Chief Executive of BTE (Bundesverband des Deutschen Textileinzelhandels), the German Textile Industry Association.
This represents 5% of entire workforce of the sector.
Over the years, Germany has seen drop in clothing prices and lower sales. Consumer spending on the other hand has further accelerated the economic downturn that began in 2000.
Matters came to worse when 150,000 employees across West German factories refused to work in an attempt to win a wage increase, this autumn.
About 2500 textile companies are expected to close down or sale, this year from the current 40,000 which employed 389,000 workers in 2003. In 2004 they have reported a drop of 2% - 3% in turnover compared to last year, with every other company recording a drop in profit.
The most recent retail closure came at the textile discount chain NKD Vertriebs GmbH, which will shut 20 of its 65 stores belonging to Hummel & Edenhofer GmbH. Approximately 260 lay-offs are likely to take place due to the closure. |
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