Primark is one of a number of UK retailers looking to take some of its manufacturing out of China in order to ensure it has sufficient stock for its stores. Primark uses around 500 different suppliers in China, mostly located on the east coast, and together these produce around 45 per cent of all Primark’s stock. Most of these suppliers and their respective supply chains, including textile mills, are impacted by coronavirus. It is understood that the Chinese government is pressing for its people to return to work to achieve a quick return to ‘normal’ production levels. However, some of the British retailers we have heard from are now saying that they will be looking to spread their future business across suppliers in alternative locations, including the UK where feasible, in order to achieve a more secure supply chain, rather than continue to be dependent on production from a single country.
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