Wednesday, 13 May 2020

Mango store reopenings under way, 80% of estate operational by late May




Spanish fashion retail giant Mango has now reopened all of its stores in 50 of the countries in which it trades. This means 1,050 shops are now open. And while the entire store estate is operating in those 50 countries, it has locations open in 72 countries in total.

The company has begun its reopenings in Spain and France with 234 shops, however, the UK chain remains shut with the government in Britain saying stores selling non-essential categories will be able to open from next month.

Its shops in Spain and France have been closed since mid-March and the reopening program is hugely important for the company as the two markets are most important to it in terms of turnover. The remaining 344 shops in those countries should be open by June 2.

And Mango said it has "ambitious" opening plans for the next few weeks with an additional 700 shops due to being back by the end of this month. That would mean around 80% of its entire network would be operational.

Of course, that doesn't mean they'll necessarily generate a similar sales level to what they were seeing before the lockdowns began. The company is complying with health and safety regulations in each market and this could mean that fewer people are allowed inside shops at any one time. It also has to contend with an understandable degree of consumer caution, with recent surveys showing that many consumers are still unwilling to venture into physical shops for the time being. 

Plus there’s the issue of fashion being seen as a non-essential category that consumers are unlikely to prioritize if money is tight. And there's also the fact that many occasions for which they would usually buy new fashion items simply won't be happening this year – from summer holidays to festivals, weddings and evenings out.

Mango, like so many of its fashion retail peers, has also been making the most of the opportunities presented by the lockdown to ramp up its online sales. Online is an increasingly important part of the overall mix for the company and at the end of last year, e-tail represented 24% of its total turnover, with e-revenue of more than €564 million.

No comments:

Post a comment