Financing of fashion retail groups

Abstract

Purpose: The retail industry has grown and gained popularity and significance over the years. The industry is of utmost importance to society, and makes up a big part of the local Gross Domestic Product (GDP). This study aims to highlight the importance of funding provided to Fashion Retail groups, and investigates the supply of such funding. Ultimately, this study also identifies several funding and information gaps that exist between the retail groups and financiers which include both banks and grants. Design: The research methodology was decided upon based on the research objectives established. Firstly, secondary research was obtained on the topic in question, and following this primary data was attained through semi-structured interviews carried out with both retail groups and financiers. Findings: A primary finding obtained is that an information gap exists where Fashion Retail groups do not feel that they have enough information provided to them on the availability of funding nor the right relationships with financiers. In addition, a finance gap also exists; however, it mainly occurs from the side of the grants. Moreover, credit financing does not appear to be an issue; albeit Fashion Retail groups still being treated as any other organisation. Conclusion: Even though the Fashion Retail groups seem to be satisfied with the funding options being provided to them, considering their importance to the economy, more opportunities should be available particularly with regards to grants. In addition, it is the author’s opinion that Fashion Retail groups are partly to blame for the information gap and should invest more time in researching alternative sources of finance. Value: Moreover, both the finance and information gaps should be seen to. As a result of addressing the evident information gap, the finance gap might also be reduced. Lastly, financiers but more importantly the government, should be more aware of the benefits that Fashion Retail groups carry to the local economy if they are funded suitably and accordingly.