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Gildan To Deepen Private Label

(Filed Under Fashion News). Hanesbrands, Inc. may want to keep its eye on competitor Gildan Activewear. Following a successful first quarter of 2010, the Canadian manufacturer is planning to expand its private label program during the year, according to its Q1 2010 shareholders report.

As part of its strategy for 2010, the company intends “to grow our private label activewear business to provide undecorated products to large non-retailer branded apparel companies,” the report reads.

In addition to the activewear channel, the company also plans to position itself as a major private label supplier of socks and underwear “to mass retailers seeking to consolidate this supply chain with fewer, larger manufacturers.”

The company also plans to continue to expand internationally within its existing manufacturing hubs of Mexico and Asia/Pacific, which grew significantly for the company during the first quarter of fiscal 2010.

In other news, during the first quarter the company acquired a “state of the art” 850,000-square-foot distribution center and office building in Charleston, SC. The company plans to consolidate southeastern retail distribution operations to this office during 2010, which will result in the closure of its facilities in Martinsville, VA and Fort Payne, Ala. The company did release information on how many jobs will be affected by these closures.

Its Q1 report said about the acquisition: “This facility will be utilized to support the company’s retail strategy, and is also expected to generate cost reductions and efficiencies as a result of consolidating existing distribution capacity […] The building offers Gildan sufficient capacity for its current storage requirements and can be expanded to accommodate further long-term growth requirements.”

Montreal-based Gildan Activewear calls itself the leading supplier of activewear for the screenprint market in North America, as well a leading supplier for this market in Europe and Mexico. The company also sells socks and underwear to mass market and regional retailers under branded and private label programs. For further information, call (514) 735-2023.

more Fashion News >>

Published 02-12-2010 by Amanda Torres Price

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