Clothing, a sector that is struggling to regain pre-crisis activity

Last November, the Alliance du Commerce – Retail Int Panel took stock of the activity of the clothing sector . In October 2020, the clothing sector saw a 0.8% increase in turnover. The month of October saw the end of the economic catch-up of the sector. At the same time, it shows a return to a pre-crisis normal activity. But we should not rejoice too quickly. The month of November did not offer a positive balance sheet. In addition, store traffic has been steadily decreasing since the beginning of the crisis. So if the balance sheet is mixed, at the dawn of the end of the year holidays the clothing sector must continue to cope. Indeed, this period is crucial for the sector.

The clothing sector with jagged figures

In order to allow consistent results, the Alliance du Commerce – Retail Int panel compares the current figures to this of 2019. Indeed, in March 2020, the administrative closures of stores do not allow a relevant comparison to be made. Thus, after a drop in activity in September, the turnover of clothing stores is up very slightly compared to 2019. Indeed, in September 2021, revenue decreased by 5.5% compared to 2019. The October performance is based on the success of the “Child” section, which compensates for the difficulties encountered by the “Women’s” section. In addition, the postponement of the All Saints’ Day holidays has influenced the figures by bringing a lag in consumption.

If the beginning of the month was placed in the continuity of October, the rest of November was then rather disappointing. It was marked by a Black Friday that did not necessarily convince consumers. The week of Black Friday shows a drop in activity of 9.5%. The famous Friday of Black Friday displays particularly significant figures. It shows a loss of 23%. Overall, the clothing brands of the Panel Retail Int. posted a 2% drop in in-store sales compared to 2019.

So to speak, the apparel sector is facing inconsistent results that still seem to be approaching a pre-crisis activity. However, the crisis has inevitably changed consumption. Moreover, it still raises doubts about the future. It is then necessary to adapt an agile reasoning. Over the year 2021, the decline in in-store sales remains 18.8% compared to 2019.

Clothing stores shopping
The clothing sector still has a mixed record

Shopping malls and store traffic still struggling

Shopping malls are struggling to convince consumers. They show a decline in turnover of 4.5% for shopping centers in the city center. Shopping centers on the outskirts are experiencing a slightly smaller decline but which is still 3.8%. At the same time, if consumers go to shopping malls less, they still go to stores. In the city center, the latter experienced a 2.1% increase in turnover. However, everything is relative and in-store traffic is still declining in general and concerns all points of sale. Indeed, in-store traffic is down 14.5% compared to 2019.

Consumers are then more comfortable consuming online. Online sales for the clothing sector continue to grow with growth of 82% compared to 2019 in October 2021. An increase that also shows an increase of 6% compared to 2020. So to speak, online consumption remains the mainstay for the apparel sector. It will be necessary to take stock after the end of the year holidays. Indeed, this crucial period should bring valuable insights.

Sources:

“Panel Alliance du Commerce – Retail Int.: +0.8% in-store sales compared to October 2019” Trade Alliance, press release of 4 November 2021

2% drop in in-store sales: a disappointing November linked to a bad Black Friday” Alliance du Commerce, press release of 3 December 2021

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