Transparency Drives Investment Opportunity in Retail Stocks

Clothing supply chains, demand for change, and groups such as Fashion Revolution will continue to drive revenue opportunities for the best retail companies

Liontrust Asset Management 4 May, 2017 | 3:02PM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Liontrust Sustainable Investment co-manager Neil Brown looks at how consumers are now demonstrating a clear demand for transparency around the products they buy.

Fashion Revolution Week highlights the anniversary of the 2013 collapse of the Rana Plaza complex in Bangladesh, a disaster which resulted in the loss of more than 1,100 lives. Many of those killed were employed in the garment industry, an industry that supplies the clothes that end up on our high street, to the brands whose shares end up in our pensions and ISAs.

Clothing supply chains have lengthened under a relentless pressure on costs in recent decades as emerging economies offered lower wages, weaker labour laws and tax breaks to win valuable contracts from brands competing in what became known as the ‘race to the bottom.’ Consumers are now demonstrating a clear demand for transparency around the products they buy. 

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Liontrust Asset Management  provides investment services and asset portfolio management in UK, European, Asian and Global equities, Global credit and Multi-Asset

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