The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
THE CHEAT SHEET
Fashion Hunkers Down
A customer wears a protective face mask at Galeries Lafayette in Paris on Tuesday | Source: Getty
Last week, the fashion industry, along with much of the rest of the world, collectively came to grips with the fact that the Covid-19 pandemic isn't going away anytime soon. In the space of 48 hours, virtually every major fashion and fashion-adjacent event, from cruise shows to Coachella, was cancelled or postponed, and companies large and small drew up plans for employees to work remotely. What happens next? Perhaps this week a new normal will emerge, as people figure out how to work from their homes, and supply chains and stores learn how to operate safely (makeup testers are rapidly becoming a thing of the past). But we'll also get a preview of the economic toll the virus is taking; people are already shopping less, and those laid off from the airline and hospitality sectors won't be shopping much at all. Fashion brands, many of which are on shaky financial ground even in the best of times, have a long, tough road ahead.
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The Bottom Line: One wild card is whether the US and other major economies will push through aid packages for the hardest hit industries and their workers. Those funds could make or break countless businesses and personal budgets. (Patagonia is paying workers through its two-week shutdown, but most other brands likely won't.) There's a reason stock markets have soared or plunged on whether a deal in Congress looks more or less likely.
The Fashion Month That Wasn’t
Kozaburo Spring/Summer 2020 at Rakuten Fashion Week Tokyo | Source: Courtesy
— Zoe Suen and Alexandra Mondalek contributed to this item
Can the American Dream Survive Coronavirus?
American Dream mall | Source: American Dream via Facebook
Opening a new mall in 2020 was always a risky proposition. But the backers of American Dream in New Jersey are staring down a worst-case scenario as the outbreak delays a much-hyped opening of the long-in-the-works project's first stores. New York, home to the most Covid-19 cases of any US state, is just across the Hudson River from the 3-million-square-foot retail and entertainment complex. A growing number of Americans appear to be following their cohorts in Italy and China in avoiding public spaces to minimise the chances of infection, and retail analysts anticipate that malls could even be shut down by local governments. American Dream, with its emphasis on hands-on experiences ranging from roller coasters to bunny gardens, may be especially unappealing to worried shoppers.
SUNDAY READING
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Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.
Manhattanites had little love for the $25 billion megaproject when it opened five years ago (the pandemic lockdowns didn't help, either). But a constantly shifting mix of stores, restaurants and experiences is now drawing large numbers of both locals and tourists.