Pursuits
From London Fashion Salons to Bay of Bengal, Brexit Looms Large
- Sterling slump is squeezing Bangladeshi garment makers
- Price war means suppliers "are getting pushed from all sides"
Workers at a garment factory in Gazipur, Bangladesh.
Photographer: Shafiqul Alam/Corbis via Getty ImagesThis article is for subscribers only.
Some 8,000 kilometers from London’s busy shopping districts, the economic ripple effects of Brexit are being felt in one of the world’s poorest nations.
In Bangladesh, garment makers typically charge in U.S. dollars. For U.K retailers, that means import costs are rising in line with sterling’s 16 percent slump since Britain’s June vote to leave the European Union. Reluctant to raise prices for shoppers, big high street brands are squeezing suppliers instead.