Italy: a 90 billion euros market for fashion, at risk following retail shutdown

The Italian prime minister Giuseppe Conte announced this Wednesday the closing of all stores in the country, resulting shuttering of stores of numerous international and local fashion companies in the country such as H&M, Inditex brands, Uniqlo, among others.

Fashion sector, at risk in Italy. The Italian prime minister Giuseppe Conte announced this Wednesday the closing of all stores in the country, and several giants in the sector will be penalized by the current crisis as the situation continues to escalate, a nationwide lockdown and the shuttering of stores has been established. The shuttering excludes those that meet basic needs such as pharmacies, supermarkets, and food stores, as well as kiosks and tobacconists.

Italy is currently the country that is most affected by the Covid-19 in Europe, declared as a pandemic by the World Health Organization (WHO). The number of fatalities now amounts to more than 800 and the number of people infected increased to 10,500.

Fashion in Italy billed 90 billion euros ($101.7 billion dollars) last year, 5% of the Gross Domestic Product (GDP) of the third largest European economy, according to data from the Camera Nazionale della Moda Italiana. With the current crisis the country has become the Eurozone’s weak link, according to The Guardian.

Fashion in Italy billed 90 billion euros ($101.7 billion dollars) last year

Inditex has 390 stores across the whole of Italy, of which 101 of stores are that of Zara. The second concept of the group that also has a great presence in the country is Stradivarius, with 84 stores, followed by Bershka, which has 67 points of sale. Oysho, Zara Home, and Pull&Bear operate with 41, 33 and 8 stores respectively. The Spanish giant first entered the Italian market in 2002 with the Percassi group and until today, the territory remains a key market for the company.

The Swedish giant H&M has 181 stores in the Italian market, the sixth largest market for the group by revenue. The company reached sales of 8.4 billion million crowns (884 million) in Italy last year.

Italy is also a significant market for Primark. The Irish low-cost fashion chain entered the country in 2016 and currently counts with five stores within the Italian market. Fast Retailing operates with just one store in Uniqlo in Milan.

The country is also home to many luxury brands such as Prada, Dolce & Gabbana, Versace, Armani, Valentino, and many more. Brunello Cuccinelli counts 15 stores in the country as of June of last year.