Some of the biggest US players, who opened stores recently, focused on boosting liquidity reserves by cutting operational costs. As per a Women’s Wear Daily report, many of them also managed to cut debts, while others like VF Corp were able to make new acquisitions.

Emerging business models

The crisis also led to companies adopting new business models. For instance, Ralph Lauren shifted to a licensed model last year for its brand Chaps. The retailer also sold its Club Monaco business, exited from over 200 US department stores and cut off-price business to build on its namesake brand and boost prices. As the company values its brand more than its business, last year it added 4 million new customers to direct-to-consumer network, informs Patrice Louvet, President and CEO. These new consumers will help the company boost profit margins, he adds.

Fashion retailer Macy’s is focusing on beauty and accessories category. The retailer expects a strong demand for fragrance, fine jewellery, boots and handbags in coming weeks as customers are ready to get out and spend again, adds Jeff Gennette, Chairman and CEO.

Seeking new styles

Retailers also expect shoppers to get more active with their return to normalcy. Michelle Gass, CEO, Kohl, opines, while still preferring comfortable casuals, consumers will continue to seek new fashion styles as they resume work and travel.

Though the COVID-19 halted operations for most retailers, Walmart and Target continued to sell groceries and other essential items. This helped Target achieve $1 billion sales in the first quarter of this year. The retailer used most of its stores to fulfill its online operations, says Brain Cornell, Chairman and CEO.

Store expansion and upgradation

After a year of focusing on e-commerce, retailers are once again reopening their stores. This presents an opportunity for retailer for TJX Cos, Inc, the parent company of J. Maxx and Marshalls to grow its global store base. The company plans to open more than 1,600 additional stores to grow to about 6,275 stores in the long term with its current brands and sales locations. It also plans to relocate some of its existing stores to newer destinations.

Last year was also a year of technological transformation for many fashion companies. VF Corp focused on central consumer data platform last year which enabled them, to serve consumers in a more meaningful way, says Steve Rendle, Chairman, President and CEO. The company continues to explore new technologies and processes to enhance its digital operations.

Some companies are also supporting countries suffering from fresh COVID-19 outbreaks. Walmart for example is donating oxygen concentrators, PPE and financial support in India. The company was able to expand its business during the pandemic. Its global e-commerce sales grew by 43 per cent in constant currency to represent 12 per cent of the company’s total sales, adds Dough McMillion, President and CEO.