NEW ZEALAND: New Zealand lingerie brand Bendon will follow fellow apparel group Diesel in radically altering its price points to better cater to the country's difficult retail market.
The company, whose brands include Elle Macpherson Intimates, Hey Sister and Hickory, has announced plans to change some of its leasing agreements to transform more of its self-titled retail shops into outlet stores.
A report in the New Zealand Herald said the brand - that already boasts 15 outlet stores across New Zealand - has closed one of its Auckland sites and is considering selling its Elle Macpherson Intimates range more cheaply.
In an interview with the newspaper earlier this week, Bendon chief executive Simon Hughes said all clothing companies were finding the recession hard going and less well-off areas, such as Manukau, were "trading down considerably".
"We're following the much more price-conscious New Zealand market."
The news comes at a difficult time for the New Zealand apparel industry with heritage brand Line 7 going into receivership and childrenswear retailer Pumpkin Patch forced to close around 60 per cent of its 35 stores in the US.
The recent issues have led industry body Fashion Industry New Zealand to make a direct appeal to retail landlords to "become more realistic about what returns can be in the current climate" rather than drive more companies out of business.