US fashion retailer outsources direct spend

20 August 2009

21 August 2009 | Jake Kanter

US clothing company Talbots is outsourcing its apparel purchasing to Li & Fung for an undisclosed amount.

From September, the Hong-Kong based sourcing firm will manage procurement for a number of ranges, including swimwear, handbags and accessories.

Talbots, which specialises in women's wear, hopes the deal will help it reduce costs and speed up the time it takes to get clothes to market.

Li & Fung announced this month that its operating profits had risen 11 per cent to just under HK$1.7 billion (£132 million) in the first half of 2009.

Meanwhile, Li & Fung customer fashion chain Liz Claiborne recently revealed it plans to save $100 million (£60 million) this year, on top of the $70 million (£42 million) it delivered in the first quarter of 2009. Cost reductions will be delivered through outsourced functions, such as purchasing managed by Li & Fung.

SMaug2009

LATEST
JOBS
Hounslow, Heathrow /Richmond upon Thames
Competitive salary depending on experience plus generous share award
Tails.com
Gatwick, West Sussex
Competitive plus benefits
Gatwick Airport
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE