Italy: ‘Domestic footwear market faces collapse’
17/09/2013
“We are faced with a dual market, a situation that requires a special effort if we do not want a collapse,” said Cleto Sagripanti, president of Assocalzaturifici.
“We must avoid a collapse in the domestic market at all costs, because we are in danger of losing what historically is a demanding market, and we therefore have a stimulus to continue to improve.”
Over the past few seasons, exports have performed reasonably well, although they have slowed, while domestic consumption has declined rapidly.
Domestic consumption fell 5.3% between April and June, and 7.2% in the first quarter of the year.
“One of the most worrying aspects,” added Mr Sagripanti, “is the fact that traditional retail is particularly affected, with double-digit declines of purchases in stores specialising in footwear. The risk is desertification of our historic city centres, enriched by the presence of stores which historically represent the distribution wealth of our country. In a context in which delays in payment have now become systemic and the credit crunch shows no signs of relenting, we find ourselves faced with a very dangerous vicious circle.”
In in the first six months of 2013, discounted sales accounted for 55% of sales in volume (and 53% in value). “A special effort is absolutely necessary, without which Italian companies will be forced to flee the Italian market. From our research, it clearly emerges that 84% of businessmen considers as a priority – among fiscal policies that could kick start the domestic economy – reduction of the tax wedge on labour and companies in order to increase people's disposable income and rebalance taxation on production. Giving back breathing space to labour is absolutely essential because our companies can no longer support, as has happened up until now, the full weight of the crisis. Employment levels, if the situation were to continue, will only get worse."
Share this story:
