Horror in the main street when Marks & Spencer collapse 60%
The devastating blow to retailers as a result of mass store closings has been uncovered in a report by Goldman Sachs that predicts a massive drop in sales at Marks & Spencer.
Analysts for the Wall Street giant have slashed sales forecasts for the M&S apparel division, down 60 percent in the three months to the end of June in the same period last year.
The bank expects clothing sales across Europe to drop by 30 percent in the first half of this year, assuming a 90 percent drop in sales for a four-week closing period in March and April.
Out of fashion: Goldman Sachs says Marks & Spencer clothing will shift 60 percent
Rating agency Standard & Poor’s has also lowered its rating of M&S ‘long-term debt from BBB, the lowest level of investment grade loans, to BB +, commonly referred to as junk debt.
Concerns are growing among retail executives that billions of pounds of clothing are unlikely to be shifted in stores or warehouses by the end of April at the earliest.
A clothing boss at a well-known retailer said, “This is a long-term disaster that will have an impact on businesses and the high street.” He said he didn’t know when his stores would reopen, but if they did, there would be a stock fire sale “like you’ve never seen before.”
Investors and forecasters of the city have struggled to keep up with closings and, most recently, a growing number of apparel retailers’ decision to close warehouses for online delivery.
Next closed its online operation Thursday evening after criticisms from MPs about whether staff could follow social distance rules.