Last year it was said that November would be a warm month for the east coast and it continued to be quite warm during the month of December. That made winter clothing sales decline as well as after holiday sales. There were also announcements made from a couple of retailers, including Macy’s, that some store would be closing because of declining sales. Now, sales in retail stores are still declining, stores are closing, and some companies are even going bankrupt, however, it isn’t because of warm weather. It’s because of online shopping and new brand interests.
According to an article on The Washington Post, Aeropostale filed for bankruptcy and is planning to close 154 stores. The brand’s sales have declined about 16% with a net loss of about $22 million. The brand had also said in March that is was looking for a buyer.
The New York Times reported Thursday that Gap is closing 75 Old Navy and Bannan Repuplic stores in an effort to save money, which should be about $275 million a year before taxes, according to the brand. The brand’s sales declined 47% with revenue declining about 6%.
Those reports aren’t much of a surprise as winter clothing sales were still declining in January but The Washington Post’s report points out something interesting that many in fashion have already been talking about.
Retail clothing sales are declining because people are doing a lot of their clothes shopping online. Where people used to go to the store and buy their clothes, they are now going to brand websites and websites like Amazon to get clothes instead. Many clothes that are available in store can be found for more affordable prices online or can be purchased at lower prices with online only sales and special with brands.
Warm weather wasn’t the only thing that made sales decline during the winter and holiday season. Online shopping made sales decline as well. Many people didn’t get their deals in stores during Black Friday but instead shopped online. People also shopped online for gifts during the holiday season instead of in stores.
That is why stores like Macy’s have declining clothing sales. As for why people aren’t shopping at stores like Aeropostale or Old Navy?
The Washington Post also pointed out that teens are becoming more interested in brands like H&M and Zara instead of brands like Aeropostale, American Eagle, and Old Navy.
The report doesn’t say why people like H&M and Zara more, but people are more interested in luxury fashion than before and these brands offer some luxury looks at more affordable prices. You can get the latest trends in casual clothing at H&M and you can get luxury looking handbags, shoes, and accessories at Zara.
While warm weather might have made clothing sales decline during the winter and holiday season, online shopping and new brand interests are what is making sales in retail stores decline now. Everyone is shopping online because you can get better prices and people are going to brands like H&M and Zara because you can get trendy and luxury looking items from them.
So, what do you think? Are clothing sales declining because people are shopping online and are more interested in brands like H&M and Zara? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
Image Sources: (Featured Image)Got any tips? Send them to me here and it may be featured in a post! firstname.lastname@example.org