2001 Appraisal: From Caution to Concern
The year began with caution as hints of recession crept into day-to-day business and consumer spending began to curtail. And the year ended in concern as those in the apparel industry looked for ways to recover business lost following Sept. 11. Most in the industry agree that the business was not faring well prior to that day. But consumer spending came to a near halt in the days following the terrorist attacks and has yet to recover much momentum. Now, the lackluster holiday selling season is shaping up to be one of the worst in nearly a decade.
But there are bright spots in an otherwise bleak picture.
Discounters remained strong throughout the downturn in retail sales. Likewise, teen retailer Wet Seal turned itself around after a slump in mid-2000 to report increasing sales and brand-building partnerships.
Apparel employment has decreased in all areas of California with the notable exception of Orange County, where surf, swim and skate brands continue to thrive. Anecdotally, Oakland may also be picking up jobs as companies relocate there because of the high rents and limited office space in San Francisco (this cannot be verified, as the state Department of Labor does not yet compile employment statistics for Alameda County.)
The U.S. military action in Afghanistan has not derailed offshore production. The United States’ largest trading partners, Mexico, China and Canada, held their positions as major exporters to it. For those that source overseas or import product, the fears that offshore supply chains would be affected have—so far—not materialized.
