COVD-19 Cuts Luxury Retail Sales: New York Times

The shopping boulevards in London, Paris, Dubai and other cosmopolitan cities, once crowded with enthusiastic Chinese shoppers, are near empty due to the outbreak of novel coronavirus. The coronavirus has placed more than 50 million people under quarantine in China, and 70 other countries imposed travel and visa restrictions for Chinese tourists. Meanwhile, the global luxury goods industry, which depends on Chinese shoppers at home and abroad, suffers. Despite the robust performance for the last quarter, some big names already tally costs from this disruption on financial statements. Many of their stores in China have closed doors, and those that remain open report a sharp decline in sales. Therefore, leading luxury groups such as Capri, Tapestry and Kering cut financial forecasts. Moreover, some customers, fearing contamination in crowded places, might postpone shopping plans. Analysts suggest that the disruption for the luxury sector will be temporary and the industry will return to normal soon. – YaleGlobal

COVD-19 Cuts Luxury Retail Sales: New York Times

Outbreak of novel coronavirus in China reduces the numbers of Chinese tourists and shoppers, hurting the bottom line of luxury retailers
Elizabeth Paton
Thursday, February 20, 2020

Read the article from the New York Times about the effect of coronavirus on luxury retail sales.

Elizabeth Paton is a reporter for The New York Times Styles section, covering the fashion and luxury sectors in Europe. Her areas of industry focus and interest include business, tech and sustainability, along with Fashion Week coverage from London, Milan and Paris.

 2001	122; 2002	122; 2003	120; 2004	128; 2005	139; 2006	150; 2007	161; 2008	159; 2009	147; 2010	167; 2011	186; 2012	207; 2013	212; 2014	219; 2015	245; 2016	244; 2017	254; 2018	260

(Source: Bain & Company)

Luxury Goods Sales by Nationalty $US Billions 2017	 China	$118.39  US	$81.18  Europe	$66.53  Japan	$37.21  Other Asia Pacific	$40.59  Rest of the World	$25.93  	$369.83

China accounted for about one third of luxury goods spending, according to McKinsey & Co. - that number was expected to rise before the coronavirus outbreak (Source: eMarketer)

© 2020 The New York Times Company

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