ABSTRACT

The retail sector has evolved into a global maze of sourcing and production channels for the myriad consumer goods demanded primarily by consumers in industrialised economies. Driven by low-price directives, retailers have continued scouring the globe to find suppliers of low-cost merchandise such as gifts, furniture and consumer electronics. In operating terms, major retailers often utilise buying offices or agents to facilitate purchasing, with some companies maintaining buying offices all over the world. Factories producing hardlines for retailers can vary in size from small, averaging anywhere from 40 to 150 workers; medium, from 150 to 300 workers; and large, from 300 up to 1,000 or more workers. As in the footwear and apparel sectors, subcontracting is a common factor in the retail sector as well. It is one of the most contentious issues and retail multinational enterprises (RMNEs) acknowledge the need for systems to track and respond to issues related to this practice.