Building back a better future in fashion

The COVID-19 pandemic has had an unprecedented impact on the global fashion sector. Government quarantine measures to slow down the spread of the virus forced the worldwide closure of production sites and retail stores and the cancellations of fashion events. As a result, the vertiginous decline of fashion stocks such as the G-III Apparel Group (down 27.1 per cent to $11.07), Capri Holdings (down 26.2 per cent to $10.29), Tapestry Inc. (down 19.3 per cent to $13.10) and Nordstrom Inc. (down 17 per cent to $17.93) highlights fashion as one of the hardest-hit sectors.

Amidst economic fallouts of the pandemic, numerous apparel brands that were already struggling are “now scrambling to figure out what the future holds for them.” In their report Weaving for a Better Future, the Boston Consulting Group and the Sustainable Apparel Coalition declare that “the impending economic crisis is expected to wipe out more than 30% of the fashion industry’s business in 2020 alone.” Brands that were healthy prior to the COVID-19 pandemic are likely to recover. But brands that were already vulnerable will have to take drastic measures to protect themselves. Some brands like Abercrombie & Fitch and Victoria’s Secret announced the closure of stores to combat the dire decline in sales. Others like J. Crew and the department store Neiman Marcus are preparing to file for bankruptcy.