Official Partners

Menu

Commercial Impacts of COVID-19 on the Clothing Retail Industry

commercial awareness

COVID-19 has had a huge effect on almost every industry, but the retail sector has been one of the worst affected. This article will take a look at some of the companies who have struggled to stay afloat and have made job cuts over the last few weeks and months.

Overview of the Retail Industry During Lockdown

In March, the monthly retail sales volume fell sharply by 5.1%, with clothing store sales recording the worst drop of 34.8%. Food stores were the exception with growth of 10.4%.

In April, the monthly retail sales volume fell by a record 18.1%. Clothing sales plummeted by 50.2%. As expected, online sales reached their highest on record at 30.7%.

In May, the monthly retail sales did recover partly increasing by 12%. This was largely driven by a strong increase of 42% in household goods. Further, the proportion spent online reached its highest on record at 33.4%. However, the volume of retail sales remained significantly below pre-pandemic levels.

So it comes as no surprise that the retail industry is struggling. Throughout a period of low sales, companies had to pay rent, although in some cases a reduced level, and employees. Now that the government’s coronavirus job retention scheme and various furlough practices are drawing to a close, there is a huge threat of mass redundancies within the industry.

In the first 48 hours of July, it was announced that over 12,000 people would lose their jobs, with many of these based in the retail sector.

Worst Affected Companies

Almost all companies who retail clothing have been negatively affected by COVID-19. Here are some but bear in mind this is not an exhaustive list!

What is the Future of the Clothing Retail Industry?

There is a great deal of uncertainty regarding the future of the retail industry. Here are some predictions:

Words: Holly Porter

Sign up to our commercial awareness newsletter for updates sent straight to your inbox!


Sign up to our commercial awareness newsletter for updates sent straight to your inbox!
Boost your Commercial Awareness


Next: Commercial Impacts of COVID-19 on the Aviation Industry

Read More:

Loading

Loading More Content