Fashion Movers warns of more retail pain

Trucking operator Fashion Movers fears more retailers will go to the wall as consumers turn to online shopping

By Ruza Zivkusic | July 27, 2011

The string of high-profile retail collapses is set to continue, a Melbourne garment logistics company warns.

Fashion Movers (TFM) Director and owner Frank Ainalis believes smaller companies will soon shut up as consumers turn online to purchase clothes.

"Some stores open just to get their brand in particular areas of a shopping centre and some of them are underperforming stores," Ainalis says.

"Because it’s a tight market they are now closing them down. Online retail is a growing market but in a lot of cases a lot of people when it comes to clothing want to touch and feel it and try it on."

Ainalis says he has seen more than 70 percent of the clothing manufacturing base in Victoria go offshore.

In response, he has concentrated his business on servicing the new needs of the industry by providing the one service that importers, exporters, retailers, wholesalers and manufacturers need – transport.

"If anyone is going to be busier I believe it will be Australia Post because a lot of transport companies don’t do home deliveries," Ainalis says.

"The retail market is flat and will probably continue to be for a while because of the way the US dollar is and people buy from overseas but there is still a demand for it and it’s affecting everyone."

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