A new report by Coresight Research says, though retail sales have been growing year-on-year (Y-o-Y) in the US, the UK and Germany, apparel sales have been highly negative in June. Malls in the US have been massively hit by closures of apparel stores and Chapter 11 filings by fashion giants like J Crew, JC Penney, Brooks Brothers, RTW Retailwinds, Tailored Brands, Neiman Marcus.
In the UK too, many apparel brands have collapsed into administration lately like M&Co, JD-owned Go Outdoors, Debenhams, etc. Though apparel stores have reopened in the US, the UK and Germany, consumers are still wary of going out. Hence there is huge dip in demand for apparels and fashion products.
Retail sales in the US in June shot up due to home-improvement demand – with sales touching nearly 23 per cent Y-o-Y in June. Even in the UK and Germany, sales for this sector saw growth in double digits.