Global apparel market to decline 15.2% in 2020


May 18, 2020 | By RetailME Bureau

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.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /



Mahalle began its operations in 2022 as an “Authentic Turkish Grocery in 

Continue Reading

October 7, 2024 | By Anurima Das
Naresh Kumar Bhawnani, Founder & Chairman, West Zone Group

“Retail is a people’s business. When building a retail brand or the 

Continue Reading

October 3, 2024 | By RetailME Bureau
Sunil Kumar, CEO, Spinneys

From being one of the first retailers in Dubai to ban single-use 

Continue Reading

October 1, 2024 | By RetailME Bureau
Walid Shabana, Co-founder & CTO, Rabbit

For starters, Rabbit is a growing e-commerce grocery platform in Egypt always 

Continue Reading

September 30, 2024 | By RetailME Bureau
Arunachalam Palaniappan, CTO, Choithrams

In 2024 grocery retail major Choithrams has achieved several milestones underscoring its 

Continue Reading

September 12, 2024 | By RetailME Bureau
#Topshelftalks session at Food Business Forum 2024

Industry pioneers are embracing a comprehensive strategy that integrates consumer insights, digital 

Continue Reading

July 3, 2024 | By Anurima Das
#EdgeOfTomorrow session at Food Business Forum 2024

The regional grocery retail market is evolving fast keeping pace with constantly 

Continue Reading

July 3, 2024 | By Rupkatha B
#CartToCouch session at Food Business Forum 2024

If anything, the Middle East market is excited about quick commerce – 

Continue Reading

July 2, 2024 | By Rupkatha B
#EcoEchoes session at Food Business Forum 2024

From ethical and local sourcing to adopting cutting-edge technologies to curb food 

Continue Reading

July 2, 2024 | By Rupkatha B
#ByteSizedBreakthroughs session at Food Business Forum 2024

The regional grocery retail market is becoming more and more diverse, offering 

Continue Reading

July 2, 2024 | By Rupkatha B

Spinneys, the leading premium fresh food retailer, has announced the opening of 

Continue Reading

June 24, 2024 | By RetailME Bureau

Spinneys has announced the launch of The Kitchen by Spinneys, its first-ever 

Continue Reading

May 20, 2024 | By RetailME Bureau




Download Images RetailME Magazine