Many industries have been suffering in the wake of the Covid-19 outbreak across the world. It’s no surprise that the retail industry has taken a huge toll as well.
Since the pandemic, many have been opting to do online purchases over the past few months, retail brands have seen a massive fall in their sales, which led to the tough decision to shut down a number of stores worldwide.
From fast fashion retailers to lifestyle brands, here’s a list of fashion outlets that are forced to cease operations:
The popular Swedish clothing brand reported a loss of over RM1.4 billion during the second quarter as sales fell significantly due to the Covid-19 outbreak. As part of its plan to restructure the company’s business, it was announced that H&M will be shutting down 170 of its outlets worldwide and will focus on online business instead.
2. Victoria’s Secret
Victoria’s Secret announced that they will be ceasing the operations of 250 of their stores in Canada and the US. Not only that, the famed lingerie and accessories label further revealed that more branches will be closed over the next few months in an effort to restructure the brand.
The label announced that it will be closing down all its Asian outlets (excluding China) by 30th June. Malaysia, Singapore, Hong Kong, Macau, and Taiwan were the countries affected by this measure.
Esprit’s sales in Asia fell by 52.2% and 25% globally during the the first quarter of the year. As a result, the ailing fashion brand lately had to retrench 1,200 of its employees.
ZARA’s owner Inditex will be closing up to 1,200 stores across the world over the next three years. The decision was made in order to shift focus on digital growth. The group revealed that the fashion retailer’s sales dropped by a whopping 44% compared to last year. As specific details regarding the affected locations have yet to be revealed, it will likely involve Inditex’s other brands namely Bershka, Pull & Bear and also Massimo Dutti.
As sales dropped down drastically due to the extended closures of their stores following the Covid-19 outbreak, GUESS had to take extreme measures by closing down up to 100 of its store worldwide. Additionally, most of its staff, including 150 of its corporate employees, have also been retrenched.
Back in 2019, GAP revealed its plan to shut down 230 stores across the globe in the next two years. However, it seems like the brand has sped up on its store closures as it recorded a 43% drop in the first quarter, due to the spread of Covid-19.
“We are committed to quickly, thoughtfully, and decisively address stores that are underperforming or don’t fit our vision for the future of GAP,” the American fashion retailer explained in a statement.
7. La Senza
The popular inner-wear brand has been on the brink of bankruptcy in recent months, with over RM38.4 million in debt. La Senza has been closing its branches across Canada one by one. Word on the street has it that the company’s future is currently at risk.
The Canadian footwear label has filed for protection from creditors in the US and Canada in an effort to save the company. They are conducting a restructure in order to continue serving customers.
The company’s CEO explained, “The ALDO Group continues to believe in the strength of its company and brands; Aldo will remain a global brand and still has a strong presence in more than 100 countries. The company will use the proceedings to restructure its business and build on its legacy in retail fashion in other jurisdictions, allowing to ensure the long-term stability of the company and its international business.”
MUJI has filed for Chapter 11 bankruptcy protection in the US and has closed 18 of its stores in the country since March. The Japanese lifestyle brand will be focusing on online retail business moving forward.
According to the CEO, “MUJI has felt the devastating effects of the Covid-19 pandemic on in-store retail, and as a result will take this opportunity to refocus our efforts in the United States on key regional markets and e-commerce.”
With the huge numbers of retail stores bidding farewell to customers in the near future, we only have one thing in mind at the moment – Clearance Sale!
Source: Buro 24/7.