The closure of non-essential retail in the UK, now extended for another three weeks, equates to 382m sq ft of physical space out of action – space that would have generated GBP14.5bn (US$18.1bn) of revenue over that period based on 2019 sales, according to data and analytics company GlobalData.
“Measures to stop the spread of Covid-19 in the community is hitting non-food retailers the hardest, particularly clothing specialists, which account for 36% of these lost sales,” says Maureen Hinton, global retail director at GlobalData.
“While some of these sales will have transferred online, the majority will not be recovered, speeding up the demise of the weakest operators and the permanent closure of even more retail space.”
The three-week lockdown extension is expected to push down UK fashion spend by a further GBP1.4bn specifically, with UK clothing and footwear spend now forecast at GBP39.7bn (US$49.6bn) for 2020, a decline of 26.1% on 2019. This is a further GBP1.4bn drop on GlobalData’s prior forecasts on 6 April 2020.
The sector is likely to be worst hit by the coronavirus and has seen department store group Debenhams fall into administration earlier this month, while UK-based fashion and accessories retailer Monsoon Accessorize has also said it is weighing up options to secure the business’s future.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSee Also:
Online clothing brand Harpenne, which is owned by UK high street retailer River Island, has also permanently closed less than a year after its launch.
