WEEKLY WISDOM
“The world is changed by your example, not your opinion” – Paul Coelho
US and China Set to Lead Global Economic Rebound
Despite the recent spike is COVID cases, new lockdowns and travel bans, the IMF’s (International Monetary Fund) newly released 2021–22 global outlook is surprisingly optimistic.
The fund expects growth in the United States to be a full two points higher than previously projected at 5.1 percent, its strongest rate since 1984, while the IMF forecasts China growing 8.8 percent.
Its optimism is based on the new vaccines, which they expect will bring the pandemic under control, and stimulus in major economies that will boost growth.
Potential Risks; Outlook by country/region
Despite the ongoing pandemic, a recent round of reports point to steady and even strong rebounds in key markets.
MARKETS
China’s retail sales of consumer goods will likely see growth exceed 10% this year, the China General Chamber of Commerce said in a report. Other reports are targeting 15-20% growth.
- Consumer goods saw a 4.6 percent increase in the fourth quarter of last year, nearing the sector’s pre-epidemic levels.
- Growing opportunities for cross-border e-commerce brought by the signing of the Regional Comprehensive Economic Partnership will also drive sales.
India’s malls are seeing a strong rise in foot traffic and sales, starting with Tier II & III and followed by Tier I malls.
- Currently sales are 60-70% of pre-COVID levels, according to mall owners.
- Most malls have been predicting that recovery will take place in the next three months if there is no further lockdown.
PODCAST
A Digital Platform that Helps Buyers Source in Africa
Africa has been rising to the top of many buyers’ ‘need to look into’ list.
However the vastness of the continent – and the diversity amongst regions – makes this a daunting task.
Dirk Robens, CEO, talks about how ABANA make this easier by gathering key supplier information and organising it in an easy to search database.
RETAIL FINANCE
Boohoo has agreed to buy the brand of failed department store Debenhams just as rival Asos sets its sights on Topshop.
- The £55 million deal will result in the closure of the remaining Debenhams department stores.
- Asos has emerged at the head of the race to acquire some of Arcadia’s brands, reportedly offering to pay as much as £300 million for Topshop, Topman and Miss Selfridge.
- ASOS quadrupled profit in its 2019-20 financial year.
- Boohoo reported a 51% jump in first-half profits.
Francesca’s (USA) is being purchased by TerraMar Capital and Tiger Capital, after the retailer filed for bankruptcy in December. TerraMar plans to keep at least half of Francesca’s stores open.
Cole Haan (USA) withdrew its registration to go public, according to a filing with the Securities and Exchange Commission. The footwear brand, owned by U.K.-based private equity group Apax Partners. Cole Haan had hoped to raise $100 million through an IPO, but concerns about demand for footwear prompted the company to shelve those plans.
RETAIL EXPANSION
Miniso (China) opened its first store and website in Portugal this month. The brand opened its first Northern European store in Iceland in December. It also added more stores in the UK and Paris.
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