2021 was a lost year for many fashion, shoe and leather goods retailers – this was found by a recent BTE survey of more than 100 entrepreneurs, more than three quarters of whom focused on clothing.
Four out of ten retailers achieved an operating result in the last year that was worse than minus one percent of gross sales; for more than a quarter, the loss was even more than five percent. For ten percent of the survey participants, the result was halfway balanced (+1 to -1 percent). But at least half of those surveyed were able to achieve a better yield.
Many retailers were in the red in 2021
“After 2020, 2021 was the second year in a row in which, as a result of the corona restrictions, large parts of the outfit trade ended up in the red or at least achieved an absolutely insufficient return. The fact that the result for 2021 was not even worse is probably due to lower depreciation and, above all, the state support services, for which the trade associations have repeatedly campaigned,” summarizes the Federal Association of German Textile, Shoe and Leather Goods Retailers (BTE).
However, the survey also revealed positive things: Due to the delivery problems, the storage situation for autumn/winter goods has eased somewhat: 36 percent of the participants reported below-average remaining stocks by mid/end of January, 45 percent average remaining stocks and only 19 percent above-average remaining stocks.
Most respondents expect sales to increase in 2022
With regard to sales for 2022, the clothing, shoe and leather goods retailers surveyed are rather optimistic: 57 percent expect an increase compared to 2021 – almost a quarter even expect a double-digit figure – 27 percent expect their costs to be covered and only 15 percent with a minus.
When it comes to pre-orders, however, the retailers surveyed are divided: 29 percent go into the order round for autumn/winter 2022 with higher volume plans, 39 percent with unchanged and 32 percent with lower volume plans. And this despite the fact that more than 90 percent of them are currently assuming delays and even failures in the supply of current goods, almost half of them even with more than 10 percent of the goods. Only 7 percent see no delays or failures, the survey found.
Sustainability more in demand
Sustainability and ecological aspects are now weighted somewhat more heavily, because four fifths (80 percent) of the survey participants noted increasing customer sensitivity here, even if these are often isolated cases in the overall view. Six out of ten of them therefore want to take this trend into account at least moderately when shopping; a quarter are even planning to set “significantly stronger accents” here. Five percent of those surveyed complained that the range of corresponding goods was still too small.