Topshop parent company Arcadia may permanently close most of its stores
The spread of the new coronavirus pneumonia epidemic around the world has caused a certain blow to the retail industry, especially the clothing retail industry. It is reported that some analysts believe that dozens of stores in the UK of Arcadia Group, the parent company of British fast fashion brand Topshop, will be permanently closed. Arcadia Group publicly stated that no decision has been made yet. The e-commerce business is still operating as usual, but it still cannot make up for the losses caused by the shutdown of offline retail. Most of its employees are currently on leave.
In 2019, Arcadia Group, the parent company of Topshop, announced that the brand’s U.S. direct business had officially filed for bankruptcy and closed 11 independent stores. Topshop successively closed its Chinese online Tmall flagship stores in 2018 and launched the Chinese market. Later, it also announced the launch of the Japanese market.
The epidemic has further increased the pressure on Arcadia Group’s retail market. Closing stores will save more operating costs.
More than 7,000 employees of MK’s parent company will be furloughed and will open on June 1
As the overseas epidemic further develops, the American affordable luxury giant Capri Group said on Monday that it will affect production tasks and that about 7,000 sales staff in the North American market will be suspended. To ensure the health and safety of employees and consumers, the plan will officially take effect on April 11.
It is understood that Capri Group owns stores of internationally renowned brands such as Michael Kors, Versace and Jimmy Choo. The group temporarily closed all stores in North America on March 18, and brand stores will remain closed until June 1 to ensure adequate safety.
In order to preserve cash assets and reduce costs as much as possible, some Capri Group executives gave up all their salaries, and the board of directors cut their salaries by 50%, including CEO John Idall’s full-year salary It will also be halved, with employees at other levels facing a 20% salary cut to protect cash flow.
Zara’s parent company Inditex’s Spanish store is closed and the goods are shipped to China
Last month, Zara’s parent company, Spanish fast fashion giant Inditex, mentioned when it released its 2019 financial report that due to the Spanish government’s tightened control, Inditex had closed all its stores in Spain and planned to sell some of its brands. The fabric production line is transformed into a professional medical fabric production line.
As the epidemic in Spain further intensifies, the Spanish government recently introduced stricter control regulations: from March 30 to April 9, non-essential businesses in Spain Workers must stay home and quarantine. This regulation means that the production lines of Inditex’s 13 clothing processing plants in Spain will stop producing fashionable clothes and switch to the production of medical supplies according to government needs, such as medical work clothes, masks, etc.
Although it is unclear what proportion of Inditex’s clothing is produced in Spain, Inditex has disclosed that in order to achieve rapid replenishment of stores around the world, Inditex has “57% of its clothing purchased from Spain” , Portugal, Turkey and Morocco’s garment factories.”
In addition to clothing manufacturing, Inditex’s 10 logistics distribution centers in Spain have almost stopped working. Normally, Inditex’s Spanish logistics center distributes goods to stores twice a week to ensure that stores have new products in a timely manner. Since Inditex’s Spanish stores have been closed, all store delivery work has been suspended.
Fortunately, the Spanish government believes that e-commerce business is still “indispensable” in the current environment. Inditex’s Spanish logistics center has not completely shut down and can still accept online orders. It’s just that the working hours are greatly shortened. According to a union representative, these logistics centers currently have one shift per week, with each shift lasting four hours. Workers are prioritizing unloading trucks from Turkish and Moroccan clothing suppliers to avoid strandings. Today, the number of trucks heading to Inditex’s Spanish logistics center has been greatly reduced.
According to a trade union, Inditex’s logistics and distribution platform in Zaragoza, Spain, requires workers to “work two shifts a week, each shift lasting four hours.” A worker who asked not to be named said that the current workload level of the Zaragoza logistics platform is only 15% of the usual level because the stores are closed, causing the warehouse to be filled with goods.
On the other hand, since the epidemic has been brought under control in China, Inditex is shipping these goods to China via cargo planes to meet online and offline orders in the Chinese market. Workers at the Zaragoza logistics platform said that when Inditex cargo planes fly back to Spain from China, they often return “fully loaded” with urgently needed medical supplies. Spanish government officials have highly praised Inditex’s move.
Last week, Inditex founder and billionaire Amancio Ortega said that his personal foundation had purchased medical supplies worth 63 million euros, or approximately 480 million yuan. Including ventilators, masks and test kits to help Spain fight the epidemic.
Affected by the epidemic H&M sales plummeted by nearly half last month
Sweden’s H&M, the world’s second largest clothing retailer, reported last Friday that its March sales plummeted 46% due to the epidemic. And it expects a loss in its second quarter results. Data show that in the first fiscal quarter ended February 29, the company’s pre-tax profit more than doubled, from 1.04 billion Swedish kronor in the same period last year to 2.5 billion kronor. In view of the increasingly severe situation, H&M revealed that it has temporarily reduced the salary of senior executives by 20% and is currently considering whether layoffs are needed.
Adidas refuses to pay advertising fees and seeks 1 billion euros in aid
A Twitter blogger named For Exposure recently published an anonymous internal email stating that Adidas will no longer spend any advertising and marketing expenses from now on due to the epidemic. People can’t believe that a company like Adidas, with annual sales of more than 23.6 billion euros, can’t pay marketing expenses or rent because of a few months of shutdown.
But Adidas’s pressure is not groundless. While releasing last year’s full-year performance report, the group pointed out that due to the closure of most stores, the brand’s sales in China in the first quarter will decrease by 800 million to 1 billion euros, and net profit will decrease by 400 million to 500 million euros. Adidas is negotiating a financing package with German state-owned bank KfW. They said that Adidas has been negotiating a loan of about 1 billion to 2 billion euros, but the final size and time have not yet been decided. The group has suspended its €1 billion share buyback program this year and canceled purchase orders from suppliers in June.
Shanghai Fashion Week’s trade fair will start ordering activities in April
An important part of Shanghai Fashion Week, mainly relying on offline trade fairs, announced that offline ordering trade fairs will be held in major landmark places in Shanghai in April. At the same time, in order to take care of buyers who cannot go to Shanghai to participate in ordering, each exhibition will also use digital tools and other flexible methods to provide a variety of solutions.
China International Fashion Week is confirmed to be held from May 1st to 7th
With the theme of “Reconstruction·Retrograde 2020”, the 2020 Autumn and Winter China International Fashion Week will be held in Beijing Square from May 1st to 7th. Commercial Real Estate Working Committee of the All-Union Real Estate Chamber of Commerce will serve as the co-organizer of this fashion week. This season’s fashion week will also cooperate with luxury e-commerce platform Secoo to broadcast online fashion shows of multiple brands.
LVMH boss has lost 200 billion yuan due to the epidemic, with an average daily evaporation of more than 3 billion yuan
The global retail environment remains unstable, and the stock prices of European luxury goods giants continue to fluctuate. The world’s largest luxury goods group LVMH’s stock price fell by 6% cumulatively, with a market value of 163.7 billion euros; Gucci’s parent company Kering Group’s stock price fell by 4.86%. The market value is approximately 56.6 billion euros; Hermès’ share price fell by 6%, with a market value of approximately 63 billion euros; Cartier’s parent company Richemont Group’s share price fell by 6.2%, with a market value of 26 billion Swiss francs.
Bernard Arnault, chairman and CEO of LVMH, which owns nearly 80 luxury fashion brands, has become the biggest loser on the Rich List, having lost 200 billion yuan since the outbreak. , an average of more than 3 billion yuan was evaporated every day, and nearly 30% of wealth was lost. Since this year, LVMH’s share price has fallen by 22%, with a market value of approximately 163.7 billion euros.
Belle joins hands with new spokesperson Li Yuchun to create a new fashion trend
April On the 6th, Belle announced that Li Yuchun would become the brand spokesperson. Belle said that defining oneself with individuality overturns the inherent impression of this era, using the straightforward true self to show the infinite light, and also protecting the gentle original intention behind the light. Li Yuchun’s self-uninhibited fashion attitude coincides with the avant-garde uniqueness advocated by Belle. Belle will join hands with spokesperson Li Yuchun to create a new trend of diverse and cool fashion.
As of press time, Belle’s endorsement blockbuster has been viewed 476,000 times, and the related Weibo topic #李宇春 endorses Belle# has also reached 15.949 million reads. .
Under Armor may temporarily lay off all store employees in the United States
Due to the line The time for business recovery remains uncertain, and Under Armor has decided to temporarily lay off employees working in its U.S. stores and factory stores, as well as approximately 600 employees working in distribution centers. Since the outbreak in the United States, Under Armor has provided full pay for employees in these retail stores and distribution centers for up to four weeks. For distribution center employees who continue to work during the crisis, Under Armor also said it will pay additional bonuses.
Bagir, the Israeli men’s clothing manufacturer acquired by Shandong Ruyi earlier, ran out of cash
After the transaction with Shandong Ruyi Group ended in vain, Bagir Group recently stated that due to the impact of the epidemic, most of its orders were on hold or canceled, customers’ funds payable could not be paid on time, and the group’s cash had basically been exhausted. It is exhausted and unable to continue operating, and is currently actively evaluating solutions, including the introduction of new external investments.
� Under Armor also said it would pay additional bonuses.
Bagir, the Israeli men’s clothing manufacturer acquired by Shandong Ruyi earlier, ran out of cash
After the transaction with Shandong Ruyi Group ended in vain, Bagir Group recently stated that due to the impact of the epidemic, most of its orders were on hold or canceled, customers’ funds payable could not be paid on time, and the group’s cash had basically been exhausted. It is exhausted and unable to continue operating, and is currently actively evaluating solutions, including the introduction of new external investments.
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