New York (CNN Business)The retail industry has been decimated by the coronavirus pandemic, and much of the destruction has landed on luxury and fashion companies.
People have stopped shopping at stores, and many online shoppers are holding back on discretionary purchases. That has left luxury and fashion companies “exposed or rudderless,” and business will sink by as much as 30% this year, according to a new report released Wednesday from trade publication Business of Fashion and consulting firm McKinsey & Company.
According to the report, which surveyed 1,400 fashion professionals, luxury good makers and retailers will be hit the hardest: Sales are expected to decrease as much as 40%.
Fashion and luxury employees are facing “hardship and destitution.” Hundreds of thousands of retail workers have been furloughed, stores are closed and the disease has sent investors and consumers running scared.