// Fashion retailers could lose up to £800bn due to coronavirus pandemic
// The Brand Finance Global 500 2020 report found that clothing retailers are closing 20% of value
New research has found that fashion retailers are expected to lose up to 20 per cent of their value due to the coronavirus pandemic.
Brand Finance’s Global 500 2020 report found that retailers could lose around £800 billion as a result of the pandemic.
The loss has been estimated based on the severity of the loss in the sector between January 1 and March 18.
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The report also revealed the top 10 most valuable apparel brands in the world. Nike topped the list for the sixth consecutive year, recording a seven per cent year-on-year increase in brand value to £27 billion as of January 1.
The full top 10 is:
1. Nike
2. Gucci
3. Adidas
4. Louis Vuitton
5. Cartier
6. Zara
7. H&M
8. Chanel
9. Uniqlo
10. Hermès
Levi’s was the fastest-growing retailer in the sector, with its value up 38 per cent year on year. Valentino and Gap were the fastest declining, with value dropping 39 per cent.
“The Covid-19 pandemic is undoubtedly going to hit the apparel sector hard – Brand Finance has predicted that apparel brands could face up to a 20 per cent drop in brand value,” Brand Finance managing director Richard Haigh said.
Meanwhile, the pandemic has continued to affect the retail sector, particularly in the UK.
BRC-KPMG found on Thursday that retail sales in March dropped to their lowest decline on record as the pandemic took its toll on the sector across the UK.
The year-on-year total sales decline of 4.3 per cent in March was the worst ever recorded by the BRC-KPMG monthly survey.
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