By: Manila Times
According to an article by Grant Thornton International, retail has been in a major slump for the past two years; the pandemic only accelerated its restructuring. As some big-name department stores around the globe filed for bankruptcy, the same was seen among small retailers. Even if customers were welcome in stores, limited in-store capacity, as well as frequent disinfection, added unexpected costs and labor demands. The ban on large gatherings and social events especially hurt luxury retailers, which depend on seasonal sales.
While Covid-19’s damage to the industry is undeniable, experts say it is wrong to analyze and strategize the numbers from only one point of view. This is because grocery chains, retailers of fast-moving consumer goods, furniture and home-goods retailers, and cars and sellers of outdoor recreational goods actually benefited from the pandemic. This is a response to purchasing trends that were helped by consumers spending loose money on other things. Private equity firms looked to invest in businesses that focused on outdoor activities and sports, and in direct-to-consumer retail businesses.
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