Next week is a busy one in the retail calendar. As well as the long-anticipated opening of Tesco’s first stores in the US, the long-overdue Sainsbury’s Delta Two bid deadline and the much-hyped UK launch of the iPhone, fashion will once again be under the microscope.

The week will be dominated by Marks & Spencer’s interims, Primark’s finals on Tuesday and Next’s trading update on Wednesday. All will provide a barometer for the fashion industry in what is a tentative period in the vital pre-Christmas trading period.

Next is widely expected to emerge from its update fairly unscathed – maybe even with a smile on its face. An improving like-for-like trend seems certain, aided – like most clothing retailers – by a good September, better product, competitive pricing and strong marketing.

Primark is likely to have a similarly smug look on its face. It has undoubtedly ridden the storm created by the wet summer weather. With retail space having almost doubled since February last year, sales are expected to increase proportionately with new stores performing up 7 per cent. As Primark eyes new markets such as Germany and the Netherlands, its strategy appears to know no limits.

While M&S’ profits in the interims to September will have been hit by the disruption caused by its refurbishment plans, almost all of those earmarked for a revamp – more than a third of the estate – will have been completed by now, leaving the retailer fighting fit for the invaluable November sales period.

Much rests, then, on consumers and whether they will be out in force this Christmas. Sandwiched neatly either side of the above events will be the British Retail Consortium’s October retail sales figures and news on whether the Monetary Policy Committee will deliver that longed-for interest rate cut.


What’s the real cost of cheap labour?
 Despite – or perhaps because of – Gap’s conscious media avoidance, the slightest whiff of a story involving the fashion giant makes the front page. And this week it had a stinker.

The media’s frenzied scrum to claim the discovery of alleged forced child labour in India was to be expected. In the current climate, where terms such as fair trade and corporate social responsibility have become synonymous with a brand’s credibility, no retailer – particularly one in the fashion sector – can afford this kind of publicity.

Gap’s decision to withdraw from sale the item of children’s clothing allegedly made using forced child labour was a necessary one. Its swift condemnation of the practice in a TV interview helped, but is this the ultimate taboo for fashion?

Several years ago, sportswear retailer Nike bore the brunt of numerous store boycotts and angry consumer demands for action. As fashion retailers increasingly look to Asia to manufacture their products to benefit from cheap labour, you have to wonder what the costs are.

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