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Coronavirus And The Global Clothing Industry

By July 17, 2020 news

Burberry Sales Drop 45%

Burberry (BURBY) had a depressing first quarter. The luxury retailer reported same-store sales plummeted 45% as business was “severely impacted by the drop in luxury demand from Covid-19.”

The company expects demand to increase slightly this summer, with sales falling 15% to 20%. 

Burberry didn’t release a full-year forecast due to the uncertainties caused by the coronavirus.

“The second half, and the course of the pandemic from here, will largely depend on the actions governments pursue to control the spread of the virus as economies restart, including their responses to second viral waves, as well as the phasing of store re-openings, an easing of travel restrictions, and the on-going consumer response,” Burberry said in a statement.

Used Clothing Is Soaring During Coronavirus

With the virus still terrorising our cities, keeping people at home and away from enjoyable urban activities like shopping, we finally have the time to deal with our stuffed-to-the-gills closets.

Both of those form perfect conditions for Poshmark, a resale ecommerce company.

“As people turn back into their homes, they realize how much excess stuff they have,” said Poshmark CEO Manish Chandra on CNN Business’ “Markets Now” live show. “We let anyone become an entrepreneur.”

Mr Chandra noted that the joy of offline shopping is gone as people are forced to wear masks and wary of touching items. Instead, Chandra suggested that Poshmark can “bring that joy to your home.”

The sales pitch has worked with a massive rise for the company, which is savoring 50% growth in sales and listings, and 40% boost in new sellers.

Although some might be anxious of buying used items from someone else’s home, Chandra said it’s safer to buy from a reseller, because longer time is required for those items to get to your doorstep, compared to food delivery. Longer delivery time diminishes chances of coronavirus to survive.

BOOHOO Acquired Its New COVID-19 Title

A BOOHOO warehouse where 25 workers caught COVID-19 was titled a “coronavirus breeding ground” by staff.

50 workers submitted their complaints to the local government of Tinsley, a suburb of northeastern Sheffield, about the warehouse’s safety during lockdown.

The staff felt their lives were at risk, while Boohoo claims it followed government guidance to the warehouse open.

On March 31, criticised the Boohoo warehouse, saying: “The warehouse is completely full, people are virtually on top of each other with nothing put in place for social distancing, no PPE whatsoever.”

A video published on social media on March 26 shows workers in the factory standing in close proximity to each other in hi-vis jackets, wearing no masks and no gloves.

On June 17, BOOHOO stock price hit its highest mark thus far this year of 415.00 GBX and from that point onwards, the BOO stock has been steadily declining to 209.60 GBX as of July 16.