MEXICO CITY — Mexico’s apparel industry reported that sales dropped 70 percent as the coronavirus continues to spread in Latin America’s second-largest economy.
“Next week, we are expecting most factories will close or implement technical stoppages due to a lack of liquidity as we face losses of 70 to 80 percent compared to last week,” main industry lobby Canaive said in a statement. “Retailers have decided to cancel clothing deliveries, prioritizing pharmaceutical, food and other consumer products.”
Mexico’s textile- and apparel-makers, as well as large retailers and department stores such as Liverpool and El Palacio de Hierro, are suffering as the country forces lockdowns to stem the virus.
Nearly 320,000 jobs and 8,815 companies are in jeopardy, Canaive said, adding that the textile and apparel sector accounts for 3.2 percent of Mexico’s GDP.
“Due to the health emergency the country is experiencing, we see a series of negative and unforeseen circumstances…that will affect the industry’s financial equilibrium and the continuity of employment and production levels,” crucially for resource-stripped small and midsize firms.
Canaive is speaking with broad industry body Concamin and retailer association Antad, also reeling from rising store lootings, to ask the government for a package to aid the industry.
The Mazatlan Post