Clothing retailers will have to adjust in post-Cavid times

(Toronto) La pandémie de COVID-19 a déferlé sur le secteur canadien de la mode comme un ouragan, causant de graves dommages et faisant quelques victimes dans son sillage.

The widespread closure of shopping centers and offices and the cancellation of celebrations and major events have been devastating, argued the owner of Harry Rosen, one of the main men's clothing retailers in the country in the country.

"We survive," said the president and chief executive officer of the company, Larry Rosen, before adding that online orders had jumped almost 500 %.

"[Electronic commerce] was very, very strong, but that still does not compensate for our national detail footprint.»»

M.Rosen underlined that the coronavirus had accelerated the trends that the sector is faced, in particular the growth of all-all for the office and the electronic commerce.

« Je veux dire, les gens ne portent pas de veston lorsqu’ils travaillent à domicile»», a-t-il illustré.

Even if some sales clothing sales could never come back, even after the reopening of the offices, M.Rosen thinks most people will get back to it because there will always be more chic occasions in the office, or special occasions.

"If people can sit at home and wear fleece clothes, they will wear fleece clothes, but that will change.It will come back.What speed, no one is really certain, but it will come back.»»

The company juggled with several difficulties, taking advantage of federal support programs, by reducing its costs, strengthening its liquidity and reducing the prices of certain products earlier.Summer sale started before Father's Day.

M.Rosen assured that his company 66 years old would survive, but that some of his competitors, who have started the crisis with a lot of debts, will be in danger.

"I think that a number of companies will require legal protection.I don't think it's over.I think there are still others.»»

Already victims

Reitmans (Canada) announced last month the closure of two of its store channels and the layoff of around 1,400 workers, while the company continues its restructuring in the middle of the pandemic.

The Montreal retailer plans to close its 77 stores Addition Elle on August 15 and its 54 Thyme Maternity stores on July 18.

Modasuite, which operates the Frank and Oak brand, recently filed an opinion of its intention to present a proposal under the law on bankruptcy and insolvency.

Total retail sales will decrease by 28 % to 32 % in 2020, while luxury clothing sales should fall by 16.8 %, according to Trendex, an intelligence company specializing in the Canadian and Mexican markets of the'clothing.

The firm provides that 10 to 15 large clothing channels will considerably close or reduce their commercial footprint, and that sales will not return to their 2019 level before 2023.

Luxury brands like Harry Rosen should not suffer as much as retailers for low -end or mid -range shoes, said BruceWinder, retail analyst and author of a book on retailIn the context of COVVI-19.

« Certains des perdants seront en quelque sorte ceux qui vivent à la marge»», a-t-il expliqué lors d’une entrevue.

"These are not the best brands, they have a somewhat weak value proposal and their assessment was a little fragile before the crisis strikes.All that does is pushing them to the edge of the abyss.»»

Hudson Bay is probably among the most affected channels, said M.Winder, who believes that it could be forced to reduce its national footprint by 30 % to 40 %.

"They suffer a lot.The bay sink literally, quickly, and we cannot see this carnage because they are no longer registered on the stock market.»»

The Hudson Bay Company, which recently reopened its Canadian stores and SAKS branches, has not responded to requests for comments.

Teleworking, an advantage for some

Des détaillants de mode solides comme Aritzia, H & M et Zara ont été touchés, mais survivront, a ajouté M.Winder.

The telework has also been positive for the manufacturer of yoga pants Lululemon Athletica, who has recorded one of the most important quarterly gains on work in recent years, said his chief executive, Calvin McDonald.

« Une nouvelle normalité est apparue et nous avons été encouragés de voir à quelle vitesse nos clients adoptaient à la fois le travail et l’exercice à la maison»», a-t-il affirmé lors d’un appel sur les résultats trimestriels.

Unlike certain fashion retailers, Lululemon has a high percentage of basic products with a lifespan over tablets greater than one season, and the risk of districting is limited.

Roots testified to a similar advantage with the change in individual habits, when companies turned to telework.

"We have benefited from increased demand for our wide offer of fleeces on our online activities. Pour tirer parti de cette demande, nous avons créé une nouvelle section consacrée aux “vêtements en coton ouaté” sur notre site web»», a souligné la chef de la direction, Meghan Roach.

Elle a dit qu’il y avait un petit coup de pouce supplémentaire dans les ventes de vêtements en coton ouaté pour hommes, car ils recherchaient plus de confort « en dessous de l’écran»».

One of the tools that retailers have used to face the challenges is to renegotiate monthly rents.

M^me Roach a souligné que Roots n’avait pas payé ses loyers d’avril et évaluerait la rentabilité de chaque magasin afin de déterminer « l’empreinte qui nous convient au Canada et comment nous équilibrons cela […] avec nos activités de commerce électronique»».

M.Rosen also expects to see his commercial footprint to decrease over time, after closing a store at the end of the lease.

"Over time, I think it will be reduced, especially since the web becomes a much more important part of our activities.»»