Fashion Industry Set to Lose $150BN in Sales.
Music by: Cabaret Nocturne – Blood Walk.
It’s CULTED with your 60-second NEWS BLAST.
WWD has reported that the US and European fashion industry are set to lose at least $150Bn in sales from store closures due to the coronavirus. This number comes from estimates from March and April’s sales last year, of $68bn in the US, and $82bn in Europe and Canada.
While some of the losses will be made up from online, it won’t be enough to fill the vast financial hole.
Stores are slashing prices in a bid to soften the blow, but that has little effect when stores are closed and no one is shopping.
At this stage, it is unclear just how much the industry will lose and how long this will last for. Although we can get an indication from China, who are opening stores back up.
Chinese retail sales plummeted by 20.5% during January and February compared to last year in the weakest sales period on record since January 1990. The figures for March are likely even worse.
The focus globally is currently on health and safety, but the reckoning for the industry is coming.
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See also: ONLINE RETAILERS HIT BY CORONAVIRUS