- Two teams have been highlighted since the beginning of the crisis. This trend has been observed all along the lockdown period but is also a yearly trend. H&M has reduced its number of articles in promotion compared to last year, while Zara has done the opposite. However, the number one retailer in the world still has a lower share of discounted articles compared to the Swedish mogul.
- Retailers that have increased their number of discounted articles have done it with a lower average discount rate than last year . Is this proof that strategies like Black Friday are the ones that payout the most?
- Prices on average have increased for H&M and Mango, while for Zara and Uniqlo, a decrease can be observed. Is it due to an alignment of prices or a strategy to win as much margin as possible?
The coronavirus pandemic is the only word we have had in mind since the beginning of the year. It has been a hell of a roller coaster ride for half-year 2020.
Now that stores have reopened and brick and mortar have (almost) started to get back to business as usual, it is time to compare the outcome of this crisis to last year during the same period. This will allow us to get an overview of how the pandemic has impacted the industry.
Like the previous reports, we have analyzed the European markets by mainly focusing on the big players and the most important markets for the brands in terms of sales net: Germany, France, Spain, and Italy.
Aging of the stock: the share of challenging stock
Compared to week 19, week 20 and 21 have experienced lower numbers of new articles’ arrivals.
Through the Aging of the stock, we can see the retailers that opted against the increase of discount as a strategy are experiencing an increase in the 0-60 days bracket.
For instance, in the case of C&A and H&M, they have decided to decrease the number of discounted articles since the beginning of the pandemic and lockdowns in Europe.