USA, footwear and clothing retail taking a nosedive: they were expecting growth, what they got was a collapse

According to the economic and financial information company Thomson Reuters, in April, the entire US retail range missed its sales forecasts, while in May, the percentage of stores behind on expectations was 57%. Analysts predict gloomy horizons (except for the online sector): “We are missing a sustained driving force for demand, such as a trend, but also an encouraging macroeconomic scenario that stimulates purchases,” the Wolfe Research study centre comments with a note. Which ends like this: “The estimates are necessarily cautious in view of the confirmation of a deteriorating economic situation and the continued use of sales.” Moody’s predicts that clothing and footwear will end 2016 down 5-6%, while earlier this year it predicted an increase of 2-3%. It also mentions The North Face, which is trying to free up the warehouse with discounts of 70%. For Matthew Fassler from Goldman Sachs, “the volatility of the European currencies is the highest risk in the short term. Tourism could see a significant decline, impacting on department stores. Only American brands with little exposure in Europe would be saved.”


Choose one of our subscription plans

Do you want to receive our newsletter?
Subscribe now