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Sales of private apparel retailers dip as consumers focus on essentials

With most big-box companies focused on selling essential items to customers, non-essentials like apparel are taking a backseat. Currently, with customers spending more money on essentials, investment in retailer-owned apparel brands isn’t paying off, while investments in food, beverage and essentials are. Target, for example, saw comparable sales for the latter categories increase by 20 per cent in the last quarter.

Others, like Kohl’s, were struggling with apparel before heading into a global pandemic. The company did not meet its internal expectations for 2019 due in part to shortcomings with its women’s apparel business which makes up about 30 per cent of its sales. The retailer continues to see success across intimates and activewear — it sells Nike, Under Armour and Adidas, among others — but classic and contemporary offerings are struggling. As a result, the company has decided to exit eight women’s brands.

Target, on the other hand, is seeing a boost in e-commerce sales for the month of April — about a 275 per cent increase — but apparel is crashing while categories like food and beverage are performing well. This week, comparable sales for apparel and accessories slipped 30 per cent in the month of March and are down more than 40 per cent so far in April.

 
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