Showing posts with label Corona Virus. Show all posts
Showing posts with label Corona Virus. Show all posts

Wednesday, March 25, 2020

New Look halts production and seeks three-month rent holiday

New Look halts production and seeks three-month rent holiday
New Look has requested a three-month rent holiday from landlords amid the ongoing coronavirus pandemic.
In a business update, the British fashion retailer said it is also looking to “significantly” reduce marketing costs, pause all production, delay all significant capital expenditure projects, and halt recruitment to minimise the impact of Covid-19.
The company has also confirmed it is actively pursuing government support in the form of a business rate exemption for 12 months, employee cost support, deferral of tax and national insurance payments, and by gaining access to the Covid Corporate Financing Facility. It expects these measures would “significantly improve” its cash management.
The company has also dropped guidance for the 2020 financial year.
Earlier this month, the retailer closed all 480 of its UK stores and all 28 of its stores in the Republic of Ireland.
But it remained positive, noting that due to its financial restructuring completed in 2019 it entered into the Covid-19 outbreak with “strengthened liquidity” and has no near-term maturities on its long-term debt funding.
New Look CEO Nigel Oddy said in a statement: “Our absolute priority is to keep our customers and colleagues safe, which underlined our decision to temporarily close our stores in advance of government advice to do so. Given the unprecedented circumstances that we - like all retailers - are operating in, we have taken a range of decisive and immediate actions to help us navigate through the coming period.
“We are confident that a combination of these ongoing actions, the significant financial and operational progress we have made over the past two years with our turnaround plan, and the strength of our brand mean that we will be well positioned to return to growth when a more normalised operating environment resumes.”
Photo credit: FashionUnited


* This article was originally published here

Thursday, March 19, 2020

Covid-19: How retailers in the UK and Ireland can learn from Italy’s online sales surge

Covid-19: How retailers in the UK and Ireland can learn from Italy’s online sales surge
As the fashion industry continues to feel the effects of the ongoing coronavirus pandemic, buying behaviours are changing, with many consumers going online to shop while they have limited access to physical stores.
Data emerging from Italy, which is considered to be several weeks ahead of the UK in terms of the advancement of the outbreak, suggests there could upcoming boom in online sales in the UK and Ireland. Between 24 February and 1 March, online sales of consumer products in the country soared by 81 percent compared to the same week last year, according to data analytics company Nielsen.
Ciaran Bollard, CEO and founder of Dublin-based e-commerce software firm Kooomo said retailers should prepare their online stores for these potential surges in customer traffic and make sure their business processes can cope.
“The impact of coronavirus on the global economy is accelerating the need to start delivering products to customers who cannot leave their homes,” Bollard said. “Retailers that have invested in omnichannel solutions and have in-store stock available online will help to ease the negative effect of no footfall on the high street. I know some retailers considering resupplying the main delivery warehouse with shop stock to help fulfil this demand.”

UK and Ireland prepare for surge in online orders

Bollard also advised retailers to be open and transparent with customers about any potential disruptions to deliveries. “Although this will put pressure on retailers, there are great opportunities for those that rise to the challenge and hopefully the UK and Irish markets can learn from the situation unfolding across Italy,” he said.
“Where the supply chain is affected for home deliveries, customers are willing to have a longer delivery window to avoid going to stores. Therefore, we would advise retailers to make sure communications with customers are accurate and transparent, as it is crucial to ensure delivery timings on an online store are updated to avoid disappointment.”
The advice on transparency echoes guidance given last week by retail data company Edited which highlighted five strategies fashion retailers could implement to minimise the impact of Covid-19 on their businesses. Edited also this week published a podcast on the same subject with its analysis director Rebecca Milne.
Bollard continued: “This is an ever-evolving situation as the world is grappling to contain the virus and there will be few regions that won’t be affected by coronavirus, but some regions are more affected than others. Stockpiling and substitute stock supplies could be a helpful move to alleviate possible supply chain problems. Smart merchandising can also be used to help retailers focus on selling with lots of stock and no issues in the supply chain.
“Although it may take some planning and changing of existing processes, online retailers may be able to mitigate the serious financial losses that are affecting their businesses and negatively impacting national economies by using the latest e-commerce technology and responding proactively to this sharp rise in customer demand.”
Click here to see the latest updates on how the coronavirus effects the international fashion industry
Photo credit: Mentatdgt, Pexels


* This article was originally published here

Monday, March 16, 2020

Coronavirus causing fashion retailers to shut stores

Coronavirus causing fashion retailers to shut stores

A number of fashion and sportswear retailers, including Nike, Anthropologie, Urban Outfitters and Lululemon, have announced temporary store closures in light of the spread of the coronavirus (Covid-19).

Over the weekend, fashion and lifestyle retailer Anthropologie sent out an e-mail to its customers saying that it would be closing all of its global stores until at least March 28.

“As all of our thoughts are on the COVID-19 situation, we wanted to share an update on how Anthropologie and our partner brands Terrain and BHLDN are responding. The safety and health of our community, including our loyal customers and dedicated associates, is always of the utmost importance to us.

“As far as we know, none of our employees have tested positive for Covid-19. In an effort to protect our communities, we have decided to close all of our global stores. They will not reopen until at least March 28. We will continue to pay our store teams during this time. Because the situation is complex and evolving rapidly, our plans may change. If they do, we’ll let you know.”

Anthropologie, continued: “While we’ll miss seeing you in our stores, our website and app are always open (please allow us to provide a break from the news). We hope to bring you a touch of joy and inspiration in this difficult time.

“Look out for one another, and be well. We’ll see you soon.”

Urban Outfitters shuts stores globally

Urban Outfitters took to their Instagram to announce their store closures, stating that its global network would be “closed until further notice”.

"We’re proud to call ourselves a part of your local community, and our goal has always been to provide you with safe spaces to come together, laugh and be inspired,” explained Urban Outfitters in their Instagram caption. “While we work through these changes, know that we’re here to answer questions, keep you entertained, and to continue to engage with our UO Community however we can. Take care of yourselves.”

Lululemon confirms closures in North America and Europe

Sportswear brand Lululemon has confirmed the closure of all its stores in North America and Europe, from March 16 through March 27.

Lululemon chief executive officer, Calvin McDonald, said in a statement: “We are living in uncertain times and we’re learning more about this virus every day. We are taking this step to help protect our global community, guests and people, and ensure we are doing our part to prevent the spread of Covid-19.

“During this time, Lululemon employees will continue to receive pay for all hours they have been scheduled to work and have access to Lululemon’s Global Pay Relief plan.”

Retailers Nike, Anthropologie, Urban Outfitters and Lululemon among store closures to limit the spread of coronavirus

Eco-friendly footwear brand Allbirds took to its Instagram to explain that all of its stores in the US and Europe would be closed until March 27 and that its corporate staff would now be working from home. They added that all employees would receive full pay and benefits during this time.

The update from Allbirds co-founders Joey Zwillinger and Tim Brown said: “To our friends around the world, our thoughts are with you and your families during these uncertain times. Now more than ever, we can all appreciate just how small the world truly is, and the importance of coming together to protect out global community in times of need.

“Our online stores around the world are still open for business as usual, and we’re working closely with our suppliers to ensure their safety while we also fulfil your orders.”

3.1 Phillip Lim closes stores in New York, Los Angeles, London and Waikiki

Designer brand 3.1 Phillip Lim, also confirmed on Instagram that it would be closing its retail locations in New York, Los Angeles, London and Waikiki, and that its store teams would be available via email to help customers with their orders or purchases.

“It is essential that during this time, we restructure our practices and operate in accordance with the wellbeing of our colleagues and our global citizens,” said the company. “As we adjust to the new and challenging practice of social-distancing, we maintain our larger and constant mission of fostering community. We are taking all necessary precautions to assuage the potential spread of the coronavirus while continuing to act with love, empathy, and connectivity top of mind.”

Land’s End closes US stores until March 29

While Land’s End has stated that it will close all of its retail stores in the US until March 29, adding that it will continue to pay all of its retail employees for the hours they have been scheduled to work.

Land’s End said in a statement: “For the safety of our employees and customers, we have restricted international and domestic travel, instituted flexible work plans, including working remotely where available to encourage social distancing in our offices.”

Reformation to be available only on the “corona-immune” internet

Sustainable fashion brand Reformation said it didn’t want to “add to the stress” of Coronavirus and would be closing all of its stores “for now” and that all of its retail teams would be given paid time off. It also added that it was cancelling all events and factory tours.

In the Instagram post, the retailer said: “As it is a complicated situation, these plans might change, and if so we’ll let you know. We are closely monitoring what’s going on, and will follow recommendations from the WHO, CDC and NHS.

“As always, we’re available on the Corona-immune Internet.”

But the fashion brand also asked its customers what was “appropriate” content for it to be sharing, asking “what’s resonating with you? Do you still want to hear about new collection launches and sustainability related stuff? Old do you need a break? Please let us know.”

Sportswear giant Nike closes stores in the US, Canada, Australia, New Zealand and Western Europe

Nike announced on Sunday that it will temporarily close all of its stores in the US, Canada, Australia, New Zealand and Western Europe, from Monday, March 16 through March 27 “to limit” the spread of the coronavirus. Nike-owned stores in South Korea, Japan, most of China are currently open and will continue their normal operations it added.

Additionally, the sportswear giant has announced additional steps in other Nike-managed facilities, including the option to work from home, staggered work schedules, social distancing and additional safety and cleaning steps to “help protect and support our teammates”.

For more updates on how the coronavirus is impacting the international fashion industry here >>

Image: courtesy of Anthropologie



* This article was originally published here