2006 Retrospective
“Steady” was the word that best described 2006 business for the apparel industry.
For the first time in years, apparel employment in California held steady for the most part. And while China continued to be the United States’ largest trading partner, the increase in imports from China was modest compared to the deluge last year after the elimination of quotas.
Commercial real estate continued on a hot streak even as the housing market finally showed signs of cooling. Retail rents remained high in hot shopping districts, prompting some retailers to seek out new districts to develop. Similarly, the industrial market continued to grow and push demand to new regions.
The surprises came from the retail sector, where department stores showed signs of strength. Federated Department Stores, in particular, had a good year—its first since it merged with May Co. and began switching many of the May nameplates to Macy’s.
And it wasn’t too long ago when boutique retailers Chico’s and Pacific Sunwear could do no wrong. But 2006 saw Chico’s first sales stumble, and PacSun’s sales were on a roller coaster ride for most of the year. The steady business of 2006 bodes well for prospects of 2007. California Apparel News editors caught up with several industry executives to get their take on 2006 and their forecast for the coming year.
California Apparel News' look at 2006 begins here.
