Many well-known international clothing brands have reduced their global stores during the epidemic
According to a report by Lianhe Zaobao on June 12: The coronavirus epidemic has created a domino effect. Many well-known clothing brands such as ZARA and GUESS have chosen to close some stores one after another due to the impact of the coronavirus epidemic. Storefront.
American apparel brand Guess announced on Thursday (June 11) that it plans to close approximately 100 stores around the world in the next 18 months. These stores Distributed in North America and China, accounting for 9% of the sales network. The company operates a total of 1,141 stores worldwide and operates an additional 540 retail stores with partners and distributors.
Spanish clothing brand company Inditex also announced that it will close 1,200 stores around the world by the end of 2021. The company’s operating brands include ZARA and Bershka, and currently operates a total of 7,469 stores worldwide. Anti-epidemic measures around the world have affected store sales, resulting in poor revenue performance and losses for the two companies mentioned above in the first quarter of this year.
Gyles’ first-quarter revenue dropped sharply 51.5% to US$260.3 million (S$361.2 million), with an adjusted net loss of 1 US$18.9 million, higher than the loss of US$19.6 million in the same period last year; Inditex’s first-quarter revenue fell 44% to 3.3 billion euros (S$5.2 billion), and turned from profit to loss, suffering a net loss of 409 million euros.
Esprit Holdings, the parent company of clothing brand ESPRIT, has previously announced the closure of 56 stores in Asia outside China, 12 of which are located locally.
Actively expand online business
Apparel brand companies and retailers are Accelerate the layout of online sales channels to cope with the new normal after the epidemic.
Inditex revealed that it will invest 2.7 billion euros in the next three years to actively expand online sales, of which 1 billion euros will be used for digital business.
Local clothing retailer FJBenjamin also stated that it will upgrade its online store to provide customers with more clothing brand choices, from the original 5 to 12. . Douglas Benjamin, chief operating officer of the group, told Lianhe Zaobao that while the group is expanding its online business, it will not give up its store operations. He emphasized that physical stores will always be connected with the fashion business. After all, consumers still want to experience it in person in the store.
Singapore’s retail sales index in April showed that due to the sharp decline in the number of tourists and domestic consumption, sales of discretionary consumer goods bore the brunt, with clothing and shoe accessories falling by 85.3%.
Lee Zhuli, an economist at Maybank Kim Eng Securities, pointed out that the weak job market and the implementation of strict safe distance measures in physical stores may depress consumers from purchasing such items. expenditures.
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