Two separate RetailWire polls in recent years point to difficulties that department stores and large apparel specialty chains had in dealing with fast-fashion competitors such as Forever 21, H&M and Uniqlo, Zara. The first survey in August 2010 found that 86 percent of respondents believed that fast-fashion chains had an advantage over competitors using traditional mass sourcing methods. The second survey in September 2010 found that only 31 percent believed that current fashions offered in department stores were relevant to Gen Y consumers.
In the past couple of years, retailers (to varying degrees), including American Eagle Outfitters, Gap, J.C. Penney and Macy's, have adjusted their supply chain practices to be more responsive to the ever-changing fashion whims of U.S. consumers. Some are placing smaller orders to receive shipments faster and move through inventory more quickly.
Mostafiz Rahman, who owns a factory in Bangladesh that makes sweatshirts for Gap, told Reuters, "Two years ago they would place orders for about 50,000 hoodies and now that has come down to 15,000-20,000."
Distance between factory and store remains an issue for many American companies as fast fashion merchants often manufacture goods much closer to the point of sale, while the U.S. looks to China.
"Traditional retailers ... buy from China because it is cheap to source from there. That means when they have an inventory problem, it takes them nine to 12 months to fix it," Rahul Sharma, managing director at Neev Capital, told Reuters.