The fashion sector is being left behind by the recovery in consumption in France. Sales of home appliance products jumped 30% in the first half of 2021 and 12% compared to 2019, according to a GFK study. DIY merchants also continue to rub their hands: after a 13% jump in 2020, the activity of Leroy-Merlin, Castorama and other decorative items brands is up 18.4% at end of September, compared to the same period of 2019, according to the Federation of DIY stores and home improvement. Many consumers are also spoiling their children: sales of games and toys are up 4% at the end of September over one year, according to figures from the NPD panelist, and 4.8% compared to 2019.
But buying jeans, a coat or a pair of shoes is a whole different story. Within clothing distribution, the crisis continues. Despite a 6.6% increase in sales of clothing and textile products in France, over the period from January to September 2021, compared to 2020, the French market is in decline “By 12% compared to 2019”, recalled Gildas Minvielle, director general of the economic observatory at the French Fashion Institute (IFM), during the Fashion Reboot conference, held Thursday, November 18 in Paris.
Entry level
With the exception of online sales, whose activity is up 20%, all channels are at half mast. Department stores lost 32% of their turnover on average, over nine months, at the end of September, due to lack of tourist traffic. Hypermarkets and supermarkets saw their clothing sales plunge 17.8%. And specialized brands have lost 15% of sales in two years.
Only the mass-market channels such as Kiabi and Gémo, thanks to their entry-level positioning and their family offering, are resisting: their activity is now almost at the level of 2019. Because, retail parks, these shopping areas which bring together supermarkets at the entrance to cities and near major roads, still have their audience: sales rose by 15% on average, at the end of September, compared to 2020, from after the IFM.
“Between 2006 and 2020, the French market fell by 30%” Gildas Minvielle, Director General of the Economic Observatory at the French Fashion Institute
What will happen in 2022? In front of an audience of French clothing distributors and manufacturers, wracked by the crisis linked to Covid-19, its share of legal reorganizations and the temporary closures of their points of sale deemed non-essential by the government, the director general of the IFM’s economic observatory has been extremely cautious. “Three scenarios are possible in 2022”, to believe it. The first – a growth of 9% compared to 2021 – would allow the sector to catch up with the business volume of 2019. A more optimistic view (+ 13% in 2022) would allow it to be surpassed. Finally, admits Mr. Minvielle, a “More pessimistic scenario is not excluded” with a year 2022 below 3% compared to 2019.
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