05/06/20: Q1 During a Global Pandemic

BoF X McKinsey predict 27-30% decline in fashion industry sales post Coronavirus

  • There has been about a 60% decrease in apparel spending in the U.S & Europe
  • They believe that the industry’s comeback could be in 2020 with 2-4% in sales

COVID-19 has tipped the iceberg for many major department stores, as many file for bankruptcy, 4 major spotlights being Neiman Marcus Group, JCPenny, Lord & Taylor, J. Crew

Leaders reflect on the state of their economy, as China’s first-quarter GDP dropped 6.8%

One of the biggest apparel manufacturers in the world, Bangladesh, was predicted to lose $6 billion this year. This recently reopened about 850 factories to combat this

On May 4th, Macy’s reopened 68 of their stores. It is expected that this U.S department store will open even more soon

On a similar note, with restrictions, Ohio, Texas, and Alabama are US states that have opened some of their retail stores. It is reported that France will begin to reopen stores on May 8th and Italy on May 18th

Luxury sales are down, as consumers are changing their spending habits and travel is restricted

  • The luxury sector has been hit hard…down 39-35%
  • One example is Gucci: 22% drop first-quarter sales

Amazon was up about 30% in Q1 but Q2 predictions tell a different story with a possible operating lose of up to $1.5 billion

  • It is evident that the more online purchasing on Amazon, the more money this e-commerce giant will need to spend on workers, transportation, and sufficient inventory 

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