Photo: Olivier Zuida The Duty
Reitmans (Canada) announced last month the closure of two of its chains of stores and the layoff of 1,400 workers.
The pandemic of COVID-19 has swept over the canadian sector of the mode, such as a hurricane, causing severe damage and some casualties in its wake. The closure widespread shopping centres and offices and the cancellation of festivals and major events has been devastating, claimed the boss of Harry Rosen, one of the main retailers of clothing for men in the country. “We survive,” said president and chief executive officer of the company, Larry Rosen, adding that online orders had jumped almost 500 %. “[The electronic commerce] has been very, very strong, but this does not compensate still not our national footprint of retail. “
Mr. Rosen has ensured that his company’s 66-year-old would survive, but that some of its competitors, who have started the crisis with a lot of debt, will be in danger.
Reitmans (Canada) announced last month the closure of two of its chains of stores and the layoff of 1,400 workers, while the company continues to restructure in the midst of the pandemic. United state of america, which operates the brand Frank and Oak, has recently filed a notice of intention to make a proposal under the bankruptcy and insolvency act.
The total retail sales of clothing will decrease from 28% to 32 % in 2020, while sales of luxury clothing are expected to fall by 16.8 %, according to Trendex, a company of information marketing specializing in the markets of the canadian and mexican clothing. The firm predicts that 10 to 15 large apparel chains will close or substantially reduce their commercial footprint, and the sales will not come back to their level of 2019 before 2023.
Luxury brands such as Harry Rosen should not suffer as much as the retailers of clothing and footwear of low or mid-range, said Bruce Winder, senior analyst of retail and author of a book on retail trade in the context of the COVID-19. The Hudson Bay is one of the channels most affected, said Mr Winder, who believes she may be forced to reduce its national footprint of 30 % to 40 %.
The Company of Hudson Bay, which has recently re-opened its canadian stores and its branches, Saks,has not responded to requests for comment.
Retailers of fashion solids, such as Aritzia, H & M and Zara, have been affected, but will survive, said Mr. Winder.