Fashion retail is on the rise again, judging by the financial results of major players in this sector. Earlier this year, the pandemic created havoc in this industry as lockdown measures forced stores to close. However, the fact that people couldn’t shop in stores actually accelerated the shift towards e-commerce and online shopping.
According to the U.S. Census Bureau of the Department of Commerce, the country’s retail sales grew by nearly a third in the second quarter. The rise came as a result of a surge in online shopping, which rose 31.8% from the last quarter, or 44.5% on a year-to-year basis.
“As more states start to lift coronavirus restrictions, consumers are likely to return to shopping at physical stores but a significant portion of online shopping may be here to stay. Ecommerce sales are expected to surpass $1 trillion and represent 18.1% of total retail sales in the United States by 2024,” Zacks’ Ritujay Ghosh wrote.
Fashion rental sees a quick recovery
Just a few months ago, the major fashion retailers were reporting record losses as stores were forced to close. For instance, Inditex (BMV: ITXN), the owner of Zara and Bershka brands, reported a loss of €409 million (£358 million) between for three months ending April 30.
At that time, the Spain-based fashion retailer said that 88% of its physical stores are closed. The group reported that it lost around €2.6 billion in sales for the reported period, compared to a year ago.
Arguably the best example of how quick the fashion retail industry did recover is Next (LON: NXT). The British retail firm said in April that it expects a loss of £150 million, just a few months
