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Coronavirus puts non-food trade in big trouble

editor by editor
March 16, 2020
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Coronavirus puts non-food trade in big trouble
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“Non-essential”, non-food shops closed their doorways at midnight on Saturday. So determined Edouard Philippe. Past the well being facet that merchants settle for, the blow is horrible for a sector already injured by the rise of e-commerce and the consumption that encourage ecological convictions. The decree stipulates a month-long closure till April 15.

The clothes market has misplaced 15% in ten years. He has suffered for the previous eighteen months what knowledgeable calls “the three plagues of Egypt”: the demonstrations and blockades of the “yellow vests”, the strikes towards the pension reform which ransacked the Christmas assembly and now the coronavirus.

The administrators of Galeries Lafayette have been making ready Friday to cut back their opening hours and to maneuver from Monday to Friday from 9:30 am – eight:30 pm to 10:30 am – 7:30 pm.

Between the absences of workers who need to babysit because of the closure of faculties, the disappearance of Chinese language vacationers, and extra typically of international prospects who account for 50% of the gross sales of the flagship on boulevard Haussmann, in Paris, there was a necessity to cut back the sails and the prices.

Saturday night, after the Prime Minister's bulletins, the outright closure was organized. The malls on Boulevard Haussmann, Galeries Lafayette and Printemps, every generate greater than € 1 billion in annual turnover. A month of closure would symbolize nothing lower than 83 million shortfalls.

Purchasing facilities at half mast

The 2 manufacturers are huge homes. One is owned by a household, the opposite by a Qatari fund. The downtown multi-brand boutique doesn’t have this basis. Earlier than the federal government curfew to restrict the unfold of the coronavirus, the principle skilled unions within the sector have been already elevating a cry of alarm. Those that symbolize greater than 200,000 factors of sale, from Zara to the impartial of the small city, demanded tax and social prices reduction in addition to the discount of their rents by the lessors.

The blackout will kill many. Tens of millions of jobs are at stake. In flip, builders and managers of procuring facilities, Unibail-Rodamco-Westfield, Klépierre and others are in bother.

Survival at stake

In China, Ikea closed its shops for 3 weeks. The Swedish group has simply reopened it. With billions of fairness and with out debt, it has the means to help any such air gap. Chains in problem, reminiscent of Conforama which is within the technique of closing round fifty factors of sale, or Castorama which has struggled for a number of quarters, are taking part in their survival.

The manufacturers which have taken the flip of e-commerce can be one step forward. Distance promoting stays approved. The FNAC Darty group wished to maintain its shops open. Telework fuels the demand for workplace tools. The curtains at the moment are drawn. However the firm led by Enrique Martinez is the third largest on-line vendor in France and as of Saturday night it was placing its weight on Fnac.com and Darty.com.



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