Joint appeal from the BTE and GermanFashion associations
All textile and shoe shops are closed and sales have fallen to zero. The coronavirus has hit the fashion industry just as hard as gastronomy and cultural institutions. Thousands of boutiques, shoe shops and fashion houses and therefore their suppliers are facing extinction. In a joint letter, the associations BTE and GermanFashion criticize the previous aid measures as inadequate - and are calling for a rescue package worth millions.
The fashion industry is suffering extremely badly from the effects of the corona crisis due to its seasonal products. Food is essential, other purchases can be postponed. “Fashion retailers can hardly sell trousers or shoes from the spring collection in the summer,” says BTE President Steffen Jost. “In this respect, fashion can easily be described as a ‘perishable commodity’.”
A big problem in the fashion industry is the long, international supply chain. Even during the forced store closure, new goods are delivered that were ordered from suppliers months ago and have to be accepted and paid for despite the lack of income. Suspending deliveries is difficult because the industry is in the same situation with its upstream suppliers. Partnership solutions are being discussed, but they simply postpone the problem. “The producers are facing major challenges because procurement for fall fashion is already underway and there are cost-intensive obligations,” explains Gerd Oliver Seidensticker, President of the German fashion association GermanFashion.
Due to this special situation, an entire industry with hundreds of thousands of jobs in trade and industry is on the verge of extinction. The opening bans that have been decided until the end of April would already lead to numerous bankruptcies. “If the shops do not reopen by May at the latest, there is a risk of an unprecedented wave of insolvencies, especially among medium-sized retailers and suppliers,” warn Jost and Seidensticker.
The consequences for city centers and shopping areas would be dramatic. If, in addition to restaurants, boutiques, shoe shops and fashion stores had to close their doors forever, the quality of life and trade tax revenue in cities and towns would decline massively. “Internet trading cannot even begin to close this gap,” warns Jost.
The associations BTE and GermanFashion are therefore calling for quick help from politicians. In their opinion, a financial protective shield would be the best solution. After the forced store closures end, new unbureaucratic options for Sunday openings would also be a real help. “Stationary retail needs every opportunity to sell its products so that it can continue to exist at its location in the future and secure jobs in trade and industry,” demands the BTE President. The associations want to approach politicians with a concrete catalog of measures.
