Sales Forecast and Steps to Mitigate Losses

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Abhinav Chandra takes a look at the forthcoming holiday season to predict how fashion companies will deal with customers’ expectations, and sales decline during the pandemic.

Tackling the dual threat of COVID-19 and climate change; a data-driven action plan for retailers to adapt quickly to changing consumer purchasing behavior.

It has been an eventful few months since we last published our forecast on May 13th 2020. We have seen the slowdown of COVID-19 cases in May/June and lifting of lockdowns, the resurgence of cases, the economy rebounding quickly, but then growth slowing, and everything in between. Unfortunately for the US fashion market, our forecasted 31% year-over-year sales decline in 2020 Q1-Q2, has proved to be accurate with an actual decline of 32%. In addition, the trend so far in Q3 is in-line with our prediction of 21% decline year-over-year. Our latest forecast continues to mirror our May forecast and we forecast 34% decline year-over-year in sales in Q4. The decline is driven by a forecasted spike in COVID-19 cases/deaths and warmer than usual winter with a corresponding decrease in cold weather category sales. These conditions will make for a holiday season like no other. To deal with these conditions, Fashion Retailers and Brands will need to think creatively and act quickly to survive.

 

The article includes:

  • Sales statistics for the past year
  • Actions fashion companies should take now
  • Preparing for e-commerce order delivery challenges

 

Read the full article, Fashion Companies’ Guide to Navigating an Unusual and Unprecedented Holiday Season, on www.predictsysinc.com.