GlobalData, a global data company, said it expects the UK’s Covid-19 lockdown to be extended for another three weeks, which will reduce British consumers’ spending on fashion by another 1.4 billion. British Pound (approximately $1.75 billion).
It is currently estimated that British consumers will spend 39.9 billion pounds (approximately US$49.6 billion) on clothing and footwear in 2020, a decrease of 26.1% compared to 2019. This figure is a further £1.4 billion lower than GlobalData’s previous estimate on April 6, 2020. The UK’s nationwide lockdown due to Covid-19 will be extended for at least another three weeks. Clothing and footwear sales are expected to shrink further in 2020, likely to fall by at least 33.6% compared to 2019, due to consumer concerns about fashion. Product demand is decreasing day by day.
Although other European countries (such as Austria and Italy) have gradually relaxed their nationwide blockade restrictions, most shops selling non-essential necessities remain closed. Once the nationwide lockdown is lifted, British fashion stores are not expected to open immediately, but will remain closed for several weeks until June. The Italian government has given priority to opening children’s clothing stores for business. However, due to the gradual decline of maternal and infant-related care work in the UK, there is a lack of relevant professionals, and with physical retailers accounting for nearly a quarter of the UK children’s clothing market in 2019, consumer spending is expected to Focus on online consumption platforms.
Although GlobalData expects fashion stores to gradually start opening in June, consumers are still wary of going to crowded areas and will choose to meet in stores first. As family and friends cannot be seen during the nationwide lockdown, it is expected that the traffic of physical stores will not increase. In summer, most consumers prefer to spend time outdoors instead of shopping in indoor malls and focus on buying fashion products. British department store Debenhams, British clothing brands Oasis and Warehouse are expected to reduce retail employment in the coming weeks, and British retail group Arcadia said it is considering closing more stores. Therefore, there will be more idle stores on urban streets in the future, further limiting consumers’ willingness to spend in physical fashion stores.
Compared with clothing and footwear sales in physical stores, GlobalData estimates that online sales will be better, falling only 7.9% in 2020 (instead of the initial forecast 10.8%). But this was not enough to offset the losses incurred by brick-and-mortar stores.
British children’s clothing brand Next closed the company’s online website on March 26. Later, British shopping mall TKMaxx and children’s clothing brand M&Co also closed their websites. It is expected that there will be more companies in the future Choose to stop online shopping services. However, few retailers have actually followed this move to attract consumers to spend money in physical stores. Next reopened its website on April 14, but the information on the website was limited due to tightened cybersecurity measures, putting pressure on other companies that have also closed their websites. British women’s clothing brand Quiz, boutique department store Fenwick and fashion brand River Island have all resumed online sales. TKMaxx has also opened its website for browsing only. Because TKMaxx has strong potential to promote the sales of sportswear during the nationwide blockade, its goal is to restart the warehouse as soon as possible. operation so that orders can be received.
British online shopping brand Asos showed in its annual interim financial report that as of the first three weeks of April, global sales fell by about 20 to 25%, although there were This was partly before the UK went into lockdown, and retailers were also offering 20% discount promotions in these weeks, which in turn increased company spending. However, the promotions offer online retailers hope they will be successful in encouraging consumers to buy clothing and footwear during the Covid-19 crisis, particularly by promoting casual wear via Instagram to younger shoppers who are engaging in retail therapy (shopping to relieve stress, A self-healing method to relieve negative emotions, etc.).
