It was a gloomy summer for apparel companies

Despite the sunshine and the Olympic Games, the summer has not been a lucrative period for the clothing sector. According to the Panel Retail Int. report for the Alliance du Commerce, clothing retailers saw a decline in in-store revenue of 0.5% in July and 0.3% in August, compared to last year's figures. The beginning of July was dynamic, encouraging for retailers, but it seems the disappointing final weeks compared to last year have dampened spirits. One reason for this decline: the end of the sales on July 22, while in 2023, they were extended for a fifth week, lasting until August 1. The impact of the Olympic Games, of course, also played a part. Pierre Talamon, president of the FNH, explains that “These shops in the Paris region were affected by the preparations for the Olympic Games' opening ceremony, which marked a dead week for commerce. The security and anti-terrorism measures separating the right and left banks were gradually lifted over the weekend of July 27, 2024. With Parisians leaving the city and tourists naturally drawn to the Olympics, fashion stores were neglected. These are not the usual customers of the capital.”

On the online retail side, the figures are not promising either. Internet sales saw a sharp decline in revenue, with drops ranging from -5% in July to -13.3% in August compared to the summer of 2023. The year-to-date trend has worsened, with an annual decline of -5.3%. The Alliance du Commerce speculates that these poor performances are due to back-to-school allowances being more invested in low- and mid-range stores at the expense of online shopping. Amidst this gloomy outlook, only shopping centers have stood out. In July, stores located in commercial areas or retail parks recorded a 1.9% increase compared to 2023. In August, stores located in suburban shopping centers saw the best performance, with activity up by +3%, followed by those in city centers with a +1.1% increase.

Yohann Petitot, General Director of the Alliance du Commerce, concludes that “after a period of positive sales, fashion retailers experienced rather lackluster activity during the summer. The payment of back-to-school allowances, which restored purchasing power to families, helped boost sales at the end of August, particularly in the children's market. However, since the beginning of the year, activity has not been able to return to its 2023 level. This trend has been amplified online, where revenue recorded significant declines this summer.” The director calls on the government to take necessary measures, such as monthly rent payments, in a favorable environment for business development and employment to revitalize the fashion sector.