latest roundup of key developments in global fashion retail for this week (ending June 13, 2025):
Closures & Restructuring
- Otterburn Mills (UK): The historic 18th‑century brand, once a supplier to Dior and the Royal Family, has liquidated and closed permanently. Its shutdown highlights escalating challenges in the UK market, including rising costs and shifting consumer shopping habits. 7worldretailcongress.com
- River Island (UK): Set to close its Banbury store on June 28 amid a broader restructuring affecting up to 230 locations. The brand reported a £33 million pre-tax loss and a turnover decline of over 19% in 2023, according to thescottishsun.co.uk.
- Torrid (US): The plus-size apparel retailer announced plans to shutter nearly 180 stores—almost 30% of its locations—during 2025, aiming to reduce fixed costs and refocus investment. economictimes.indiatimes.com.
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️ Openings & Strategic Moves
- Zegna (Dubai): The Italian luxury house debuted its first runway show outside Italy at Dubai Opera, unveiling 58 looks. The event also introduced a “Villa Zegna” pop-up experience, signaling a broader push into the Gulf market, which now accounts for nearly 10% of its revenue, according to voguebusiness.com.
- Shein + Reliance (India): Fast-fashion giant Shein and Reliance Retail are aligning to manufacture Shein-branded apparel in India and sell it abroad by mid-2026, diversifying away from China amid rising U.S. tariffs, reuters.com.
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Policy & Market Environment
- US–China Trade Deal: A preliminary agreement introduces a 55% tariff on Chinese imports to the U.S. (down from 145%), and 10% on U.S. exports to China. While it offers tariff certainty, U.S. apparel and footwear still face higher costs that will likely be passed to consumers. Brands like Steve Madden are already adjusting voguebusiness.com.
- French Fast-Fashion Law: The French Senate backed legislation targeting ultra-fast-fashion (e.g., Shein, Temu), imposing penalties up to €10 per item for non-compliance with environmental standards, excluding classic fast-fashion like Zar,a nypost.com
Labor & Market Disruptions
- ICE Raids in LA: Immigration and Customs Enforcement raids hit garment factories in Los Angeles, detaining undocumented workers and triggering absenteeism, protests, and operational disruptions. Immigrant labor accounts for over one-third of the U.S. apparel workforce vogue.com.
Sector Outlook
- U.S. Retail Layoffs Spike: Retail has seen a 274% year‑over‑year increase in layoffs during the first five months of 2025, as economic pressure, tariffs, and consumer pullback hit major chains including Macy’s, JCPenney, and Walgreens. nypost.com.
Summary:
Fashion retail is navigating a turbulent landscape. Traditional brands are closing stores or restructuring, especially in the UK and the U.S., while luxury labels like Zegna tap into high-growth markets. Trade tariffs and labor issues are reshaping sourcing and operations, and regulatory action in France adds pressure on fast-fashion players. The sector is clearly at a critical pivot, balancing cost-cutting with strategic expansion in emerging markets and sustainable consumer segments.
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