What happens when the fashion industry is hit by a pandemic? A must-read for fashionistas

Key Takeaways

  1. The global clothing and clothing accessories stores market is expected to shrink to USD1,245bn in 2020 from USD1,257bn in 2019, declining at a CAGR of 1%, mainly due to the pandemic-induced economic slowdown. The industry’s revenue could plunge more than 33% in 2020.
  2. Increasing margin pressure has severely impacted big retailers and forced them to restructure their business models.
  3. Some well-known fashion names filed for bankruptcy this year due to accumulated liabilities, lower consumer demand, lower footfall and negative growth rates. A silver lining is acquisitions or mergers/partnerships that have increased significantly in 2020. Companies strong enough to weather this crisis may consider acquiring undervalued companies.

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Acuity Knowledge Partners

Acuity Knowledge Partners

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We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/