Sales of clothing and footwear fell by more than 80% by the effect of the pandemic of covid
The Republic / July 21, 2020
During the first half, sales of children's clothes were the most affected and experienced a fall in average 56.7%, according to FollowUP
Even the consultant FollowUP, which among other things have systems to account for flows of the public in different points of sale, is made and an analysis by time what is the weight that is in a format store stand alone (that are not in departmental) with respect to the flow of visits and sales. The reason for the study lies in how it would affect the segment if the bill or steps in that line were to be applied, by comparing data from July, August and September of this year, prior to the crisis.
Given that currently the stores stand alone open from 10 hours –a before the multitiendas as Paris, Ripley and Falabella - and close at 22 hours, Michelle Schnitzer, country manager of FollowUP Chile, explains that a measure of shortening the working day, but maintaining the operation of point-of-sale, “would greatly damage the retail industry because they would have to hire a turn and we know how difficult it is for the social crisis”.
Spending on clothing and new clothing is one of the first that cut off the consumer before the crisis generated by the covid-19. In fact, according to Nielsen, 46 percent of colombians took this habit of saving, a situation that, in addition to the closures of trade, led to sales of clothing and footwear fell during the mandatory quarantine up to 85%.
According to a study of the company's chilean-japanese FollowUP, between the last week of march and the first of July, the average sales in fashion for men and women in Colombia collapsed 84.6 per cent compared to the same period of 2019, the shoe fell to 85.8 per cent; the underwear they saw a reduction of 82,6%, and children's fashion 84.5%.
Impact of covid in sales of clothing and footwear
The study of FollowUP, which was attended by national brands such as Offcorss, Leonisa, White Point, Vélez, Gef, Studio F, Lili Pink and Koaj, and foreign, as Mango, Beat, Americanino and GAP, among others, also revealed that the traffic, the number of people who entered the commercial establishments, was reduced in 93,3% in the case of establishments of costumes for adults, 94.4% in the footwear shops, 91.6 per cent in the underwear and 92,2% in the costume child.
“There are two indicators are also very important: the rate of conversion and the ticket average. The conversion rate of customers entering what percentage purchase, and this indicator is tripped, because the customer who enters the store has an intention to purchase very high,” explained Nicolas Gomez , general manager of FollowUP to Colombia and Central America.
Precisely, in the case of the clothing shops are situated between 89% and 100%, and on the shoe is also quite high. According to Gomez, the retailers “should understand that they must make a sale in a very personalised and deliver a very good service”. Likewise, according to the expert, these purchases are the opportunities to increase your ticket average.
For example, Yasmin Londoño Goddess, the executive president of Offcorss, mentioned that “the situation of change that is facing the country have been invited to Offcorss to reinvent itself to remain the number one brand in the children's market of Colombia, giving the children and their families a portfolio of protective clothing, innovative, and functional”.
Day without VAT was a lifesaver
On the first Day without VAT raised the sales of the retail of apparel and footwear in 58% at the national level, according to the study of FollowUP. Stores Medellín recorded the biggest gains, with an increase of 109% compared to the same date in 2019, followed by those of Cali (94%), Bucaramanga (54%), and Bogotá (19,5%). Despite this, sales of clothing and footwear in Barranquilla were 11.5 per cent lower than the same day last year.
On the second day (July 3), the impact was minor, as the sales of the categories of fashion at the national level only increased by 26%.
Despite the numbers of covid, the good pace in January and February made the fall of the first half was not so dramatic. At the country level, sales fell 45% so far in the year, and the traffic in the stores 55%. By categories so far in the year, the fashion for men and women comes falling sales 51%, footwear, 48%, underwear, 46%, and children's fashion and 56%.
“If we compare with 2019 we've had a significant drop in consumption of clothing, but has been declining in the last few months. While people are consuming less, the positive thing is that we see between April and may a recovery,” said Carlos Eduardo Botero, executive chairman of Inexmoda.
