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.
Many European consumers are unlikely to go back to pre-crisis levels of spending even after lockdowns are phased out, the European Commission said.
In a special assessment of its monthly consumer survey, the executive arm of the European Union said excess savings accumulated during lockdowns seem to be concentrated among high-income earners whose propensity to consume is relatively low. Poorer households, meanwhile, have socked away very little and are unlikely to splurge on major purchases.
How fast will consumers spend away their pandemic savings is key to the pace of the world’s economic recovery. It’s even more crucial for Europe, where the rebound is seen lagging other advanced economies after a stuttering start to its vaccination program.
“All in all, the analysis of the consumer survey results by income and age groups does not point to significant additional impulses from consumer spending going forward,” the commission said in the report.
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Whether due to lockdowns or concerns over job stability, excess savings across the euro area ballooned over the past year, with Barclays Plc putting the figure at €600 billion ($723 billion).
But the steady decline in consumers’ assessment of their finances over the past 12 months could imply “that even once the virus containment measures are lifted, many consumers may be unable to return to pre-crisis levels of consumption,” according to the commission’s report.
The findings “point to growing wealth inequality and an increasing generation gap,” the report said.
By Carolynn Look
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.