COVD-19 Cuts Luxury Retail Sales: New York Times

The shopping boulevards in London, Paris, Dubai and other cosmopolitan cities, once crowded with enthusiastic Chinese shoppers, are near empty due to the outbreak of novel coronavirus. The coronavirus has placed more than 50 million people under quarantine in China, and 70 other countries imposed travel and visa restrictions for Chinese tourists. Meanwhile, the global luxury goods industry, which depends on Chinese shoppers at home and abroad, suffers. Despite the robust performance for the last quarter, some big names already tally costs from this disruption on financial statements. Many of their stores in China have closed doors, and those that remain open report a sharp decline in sales. Therefore, leading luxury groups such as Capri, Tapestry and Kering cut financial forecasts. Moreover, some customers, fearing contamination in crowded places, might postpone shopping plans. Analysts suggest that the disruption for the luxury sector will be temporary and the industry will return to normal soon. – YaleGlobal