Question

what effect does economic conditions have on retail clothing business?

Answer 1

The retail clothing business is made up of individuals and companies that sell cloth to end-user consumers. During periods of economic boom, people have more disposable income, thus they to buy more clothing, consequently sales increases for clothing retailers. In similar manner recessions have an opposite effect, and reducing sales for retail clothing business. As a result retailers can be stuck with huge amounts of inventory; and thus are forced to sell the clothing at substantially low prices. To compete with more generic brands the retailers of clothing may also need to sell lower-priced clothing brands because when consumers have less disposable income and usually shop for cheaper brands.