How Resilient are Fast-Fashion Retail Stores?
25 Pages Posted: 9 Feb 2022 Last revised: 9 May 2022
Date Written: March 5, 2022
The economic consequences of the COVID-19 pandemic have been devastating for physical retailers, especially for non-necessities such as fashion. But how bad exactly? How costly is a lockdown? We currently lack precise guidance. We report granular estimates on three dimensions that affected shopping behavior: lockdown and partial mobility restrictions, the local spread of the pandemic near the store, and travel shocks. While first- and second- wave lockdowns were fundamental drivers, consumer fear and tourism were also responsible for sales drops. Our results indicate a severe and heterogeneous retail impact, and inform important implications going forward.
Keywords: Fast-Fashion, Offline Stores, Retailing, COVID-19, Lockdowns, Policies
JEL Classification: C8, D12, D22, L81, R3
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