Central American unions are launching a campaign to pressure U.S. companies sourcing apparel in the region to pay factories for canceled orders and provide a living wage until COVID-19 abates.
Analysts are expecting steep declines at top retailers, which are rushing to boost e-commerce offerings to offset plunging brick-and-mortar traffic.
The retailer has three main logistic hubs in Spain, located in Madrid, Zaragoza and Arteixo, A Coruña, where it has its global headquarters.
Nearly 320,000 jobs and 8,815 companies are in jeopardy.
Companies in Latin America are being hit by canceled orders and closures related to the virus as infections begin to grow.
Most shops, including those run by large chains such as Zara, Primark and H&M, shuttered over the weekend as the country imposed a 15-day curfew.
Up to 70 percent of apparel shipments could be postponed in the next 30 days amid a shortage of cotton and synthetic yarn and thread to make apparel for U.S. sale.
In Central America, where 200 million pounds of yarn thread and fabric are imported monthly to produce apparel, manufacturers are facing $300 million worth of feedstock delays.
Axo, a franchiser of top foreign brands such as CK Calvin Klein and Tommy Hilfiger, is engaged in a major buying spree.
U.K.-based nonprofit Fashion Revolution has revealed plans to roll out its Fashion Transparency Index Mexico 2020 to encourage up to 20 brands and retailers to report their impact on labor and the environment.
Natura’s agreement to buy Avon is seen as putting pressure on smaller rivals’ ability to compete in the country’s growing beauty market.
Brazil’s Central Bank recently raised this year’s growth forecast to 2.2 percent from a prior 1.8 percent.
Fast-fashion retailer Cuidado con el Perro, or Beware of the Dog, owned by the Kalach textiles group, is forecast to register growth of 10 percent in 2019.
As approval of the new USMCA trade deal nears, the textile and apparel sectors in Mexico and Central America are coming off a tough year.