1. Airlines Aren’t the Only Casualties of Empty Airports: Luxury brands are also dependent on purchases made in travel hubs. Last year, 6% of all global luxury sales were made in airports, according to Bain estimates. – Read More on WSJ
2. RELATED READ: Travel Retail, a Luxury Cash Cow, Down as Much as 70% in Some Hubs. For luxury brands, the risk is sizable. Coresight put airport retail sales at $44 billion in 2019, and Switzerland-based Dufry projects the value of the segment to inch towards $67 billion over the next few years. – Read More on TFL
3. How apparel retailers can deal with excess inventory: The current crisis has created a unique challenge: retailers have a huge amount of inventory in stores that they can’t sell right now, and it’s unclear just how much consumer demand there will be the rest of the year. – Read More on Modern Retail
4. The economic data is even worse than Wall Street feared: “The bottom line is that consumer spending has fallen off a cliff after being relatively solid for a prolonged period of time.” – Read More on CNBC
5. Can direct-to-consumer brands survive the COVID-19 apocalypse? Many DTC companies were in trouble before, and now, the key to surviving the downturn will be cold hard cash. Many brands have minimal revenue coming in right now, which means they’ll need to tap financial reserves to continue paying workers’ salaries, office and store leases, and marketing expenses. – Read More on Fast Co.
6. RELATED READ: How Will the Market’s Buzziest Direct-to-Consumer Brands Fair in Light of COVID-19?As “sales continue to shift from nice-to-have products to must-have products,” DTC brands are “preparing to see steep sales declines [with] COVID-19 [potentially being] what puts some of these companies out of business altogether,” various venture capitalists have projected, since most of these brands and their products “fall under the nonessential category.” – Read More on TFL