The latest retail sales data may show positive results for the fashion category in November, but there is growing concern about the impact of Covid-19 on people’s willingness to dress up and engage in social activities this party season. This is particularly worrisome for retailers who had high hopes for a surge in sales during Christmas 2021, following last year’s disappointing holiday season. Many retailers have heavily invested in party-focused stock, but now face the possibility of subdued demand. The beauty sector is also expected to be affected, as makeup sales struggled last year.
According to a recent study conducted by Mintel, 61% of Britons plan to limit their time in crowded areas before seeing their families for Christmas. Furthermore, 58% of respondents believe it is important for people to wear masks in bars and restaurants, and 24% feel uncomfortable about indoor dining at such establishments. These findings indicate that the demand for going-out clothing, shoes, accessories, fragrance, and color cosmetics, which have already been struggling since the start of the pandemic, may continue to be low.
Mintel’s study also revealed that 41% of British workers feel uneasy about attending a work Christmas party due to the risk of contracting coronavirus. Overall, 43% of consumers express worry or extreme worry about catching the virus. This level of concern is comparable to the figure of 44% recorded in early November 2020 when the country was under strict lockdown measures.
In addition to virus-related worries, consumers are scaling back their Christmas plans. Forty-four percent of respondents stated that they intend to have a smaller Christmas celebration this year with fewer people compared to before the pandemic. With the recent emergence of the new Omicron variant, it is likely that these attitudes have become even more entrenched since Mintel conducted its survey.
These consumer sentiments have a significant impact on the retail industry, particularly the partywear and beauty sectors. Retailers and brands must reassess their strategies and adapt to changing consumer behavior and preferences. This may involve adjusting inventory and marketing efforts to align with consumers’ current cautious approach. Additionally, businesses must prioritize health and safety measures in order to alleviate consumer concerns and build trust.
Throughout the pandemic, the landscape of the fashion and beauty industries has been constantly evolving. With the emergence of new variants and ongoing precautions, retailers must remain agile and responsive to consumer needs. Although the current outlook may seem challenging, brands that can adapt to the changing landscape and cater to consumer preferences are likely to find success in these uncertain times.
Useful links:
1. BBC: Christmas sales hopes as retailers bounce back
2. Retail Gazette: 59% plan to cut pandemic Christmas spend by a third
