Skip navigation

Gloucestershire Business News

Fashion retailers may have to write off billions of pounds of stock

An unprecedented amount of clothing is piling up in warehouses around the UK as fashion retailers are unable to sell spring and summer stock.

With the majority of physical shops in the UK closed under the government's lockdown, sales of non-food items are down by 70 per cent, as reported by Retail Gazette. £18 billion of spring and summer clothing is building up in warehouses, as shoppers are forced to stay at home.

It's thought that spring and summer will be a write-off for most retailers, with excess stock set to flood the market in June and July, leading to significant discounting in an attempt to shift the stock. Retailers who focus particularly on the latest trends are set to be hit the hardest.

Research by Retail Economics and Alvarez & Marsal found that more than 50 per cent of non-food retailers in the UK are set to run out of cash in the next six months, with all major non-food retailers currently operating in negative cashflow.

Every year, the UK fashion market makes £55 billion in sales. The months between March and June, those likely to be most affected by the pandemic, account for a third of the annual sales.

With many fashion retailers already struggling before the coronavirus crisis, this latest blow is likely to lead to yet more companies going into administration.

Related Articles

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, June 5 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, June 5

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

COVID-19 testing centre opens in Gloucester Image

COVID-19 testing centre opens in Gloucester

The first tests have taken place at Gloucester's new regional COVID-19 testing centre.

Firm with Cinderford recycling facility tops list of £16.2billion bailouts Image

Firm with Cinderford recycling facility tops list of £16.2billion bailouts

Chemicals company BASF, which has a site in Cinderford, has been handed the maximum possible £1billion in help from the Bank of England.

Cirencester tech firm secures contract with NHS Trust Image

Cirencester tech firm secures contract with NHS Trust

The Cirencester based healthcare technology company has secured a contract to launch its digital pre-operative assessment software.

Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.