Fashion retail
The global apparel market is estimated to decline by 15.2% in 2020, which is equivalent to $297 billion, indicates data and analytics company GlobalData. Apparel is set to be one of the hardest hit retail segments due to the COVID-19 pandemic.
“The 10 worst impacted markets, in terms of value, will represent the vast majority of this total loss with mature regions suffering the hardest – the US will account for more than 40% of all lost spend, which will contribute to more major chains filing for chapter 11 over the next few months,” stated Honor Strachan, principal analyst, GlobalData.
Also read: COVID-19 unravels clothing supply chains: GlobalData
Although recovery has already started across markets released from lockdown and social-distancing measures, it is varying dramatically depending on consumer confidence. Factors such as the country’s reliance on tourism, state of economy and unemployment and the level of “revenge buying” – sudden release of pent up demand from those willing and able to spend – will play a role in determining the pace of recovery.
“Some brands across China for instance are seeing store sales reach back up to 80-100% of pre-COVID-19 trading levels, while apparel retailers in parts of Germany are also experiencing a better bounce back than forecast,” indicated Strachan. “However, players in the likes of Hong Kong, heavily reliant on tourism spending, are experiencing far tougher trading conditions, and it is too soon to assess the recovery in Italy but we expect it to be long and drawn out – the same will apply to France, the US and the UK.”
Even if retailers in some markets do experience revenge spending in the initial months following a lift in lockdown and then see trading return to 2019 levels later in the second half of 2020, across 49 markets that GlobalData analysed, it won’t make up for the lost periods of trading during the first half of the year. The global apparel market is not expected to return or exceed its 2019 value, until at least 2022.
For all the latest retail news from the Middle East, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page.
Watsons to open 20 new stores in the GCC
In 2020, global health & beauty retailer AS Watson Group signed its
April 29, 2024 | By Rupkatha B / 
The Ministry of Industry and Advanced Technology (MoIAT) in cooperation with Lulu
What does it take to sustain profitable growth in the post-IPO phase?
Mahalle began its operations in 2022 as an “Authentic Turkish Grocery in
“Retail is a people’s business. When building a retail brand or the
From being one of the first retailers in Dubai to ban single-use
For starters, Rabbit is a growing e-commerce grocery platform in Egypt always
In 2024 grocery retail major Choithrams has achieved several milestones underscoring its
Industry pioneers are embracing a comprehensive strategy that integrates consumer insights, digital
The regional grocery retail market is evolving fast keeping pace with constantly
From ethical and local sourcing to adopting cutting-edge technologies to curb food
/ 
The Dubai Duty Free (DDF) has recorded sales of $1.94 billion up
Regional eyewear retailer, eyewa has raised $100 million in its series C
Born in Senegal and raised in Lebanon, Leïa Khalaf’s journey to becoming
Softlogic Holdings PLC, one of Sri Lanka’s largest conglomerates, has a diverse
During her SOLOx session at the IMAGES RetailME Awards 2024, Mrunal Khimji,
Following the successful launch of its flagship store in City Centre Deira,
In what comes as a significant announcement, Middle East based eyewear majors
Abu Dhabi based retail company LIWA Trading Enterprises, a subsidiary of Al
Aligned with the principles of ‘slow fashion’ UAE-based homegrown brand Ryokō Bags
From designing collections to creating campaigns, from analysing user preferences and purchase
Primark, known for its affordable fashion, has experienced significant global expansion since
Previous Article
