The hit to fashion and luxury sales from coronavirus is expected to be much harder than previously feared, as a decade of growth comes to a crushing halt, reported the Financial Times.
Revenues are expected to plunge between 25% and 35% this year as a direct result of store closures owing to coronavirus lockdowns, according to the Boston Consulting Group.
The impact on fashion and luxury — a category that includes apparel and accessories, watches and jewellery, and perfumes and cosmetics — is expected be more severe this year than the recession a decade ago, with total sales dropping between $450 billion to $650 billion from 2019 levels.
The outlook is far bleaker than the firm suggested in late February, when it estimated sales for the year would decline by about 15%. That was before the virus took hold in Europe and the US and was declared a pandemic. “This is worse than 2008,” said Sarah Willersdorf, head of luxury at BCG. “There’s zero doubt we’re going to have a definite V curve. The question is whether it moves into a U or an L.”