The heralded fashion debacle 2020 sales plummet 41 percent, 14,800 fewer stores and 26,700 jobs destroyed.

The textile sector in Spain billed a total of 10,619 million euros in the year of the pandemic, which represents a fall of 41.26% % compared to the previous period, as a result of the strong impact of COVID-19. This is clear from the annual report presented today by the employers of the Acotex sector, and who also adds that the average expenditure of citizens has fallen by 40%, to 275 euros.

This indisputable reality is necessarily followed by another: in 2020, the number of stores has been reduced by 23.90%. Thus, of the 61,891 that existed in 2019, only 47,101 have resisted the pandemic. This means talking about the closing of 14,800 points.

This debacle of figures has meant the loss of 26,700 jobs. The sector has gone from employing 199,112 people in 2019 to doing so with 172,432 at the end of 2020.

"The data are catastrophic, we are in survival mode, "said the president of Acotex, Eduardo Zamácola, who believes that there will be a greater adjustment of staff, since the data of destroyed jobs is" anesthetized", in part by the effect of the ERTE.

The association details that it has been the Basques, followed by the Madrileños and the Cantabrians who have spent the most on dressing. The figures are approximately 359, 341 and 308 euros per person, respectively. On the opposite side of the ranking are the residents of the Balearic Islands-who a year ago headed the classification -, Extremadura and Canaries.

Heralded fashion debacle 2020 sales plummet 41 percent

If online commerce was already a necessity for many companies, the arrival of confinement turned the digital channel into a real lifeline to cushion the economic impact of COVID-19. Such is the case, that in 2020 ecommerce in the textile trade represented 18% of total turnover compared to 8 and 10% in previous years.

Although the online channel has behaved better than physical stores, Zamácola stressed that in the first 2 quarters of the year there has been for the first time a decline in digital sales, which is still "one more reason for concern for the sector".

As for the distribution of purchases, these have decreased both in women, which goes to 35% compared to 37% a year earlier, men (32.3% compared to 31.6% in 2019) and children that represents 13.1% and falls 3 percentage points.

Heralded fashion debacle 2020 sales plummet 41 percent

The replacement, in this sense, has taken home that has gone from 17.2% to 19.6%. The manager explains this upturn to the forced need to spend more time at home, which has pushed the user to promote this product division, to the detriment of clothing.

If a few years ago the turnover was distributed in a similar way between the different commercial formats, 2020 has changed the scenario. Thus, multi-brand stores have lost market share and, of the global turnover of the sector, they have gone from having 17 % in 2019 to only reaching a discreet 10.2 %.

On the other hand, the percentage of purchases made in specialized stores has increased ( 37.4% in 2020 compared to 34.1% in 2019) and hypermarkets did the same, going from 25% to 28.8%. As for department stores, they registered 9.3% compared to 8.3% a year earlier.

Heralded fashion debacle 2020 sales plummet 41 percent: The mobility restrictions imposed during the previous year have resulted in a fall in sales volume. Thus, tourist purchases in the territory fell by 79% in the last year, going from 92 million euros in 2019 to only 19.7. All this is explained in 77% of the loss of tourists.

As for nationalities, the purchase spending of the United States was reduced by 85%, 75% by those from South America and Canada. Even greater is the fall of the Russians (90%) and the remarkable asset played by the Asians (-70%).

Regarding everything that is yet to come, Zamácola remains confident in the good pace of vaccination, but does not overlook that although the health situation improves, the economic consequences it has caused are here to stay.

"We will have to see what consumption capacity citizens have when everything happens," he added. Of course, the positive key –and practically the only one– comes from the hand of the improvement that is taking place month by month in the sector. If the fall in sales in January was 53%, in the month of May it stands at 15.5%.

Heralded fashion debacle 2020 sales plummet 41 percent

More news:

BBVA and unions reach an agreement for the ERE with 2,935 exits: 50% of children under 50 will not have to leave

BBVA and unions have signed an agreement for the ERE in the bank that will affect 2,935 employees compared to the 3,800 departures that were raised at first. After the extension agreed on Friday, the key to the negotiations was the voluntariness of the accession to the ERE. Finally, the bank has eliminated the generational equilibrium clause that required the exit of 50% of children under 50 years of age.

In this way, it is estimated that around 72% of the departures will be over 50 years, who are the ones with the best conditions of departure. These employees can join the pre-retirement plan or the mixed exit plan.

In addition, in this latest negotiation, economic conditions have also improved compared to the bank's latest proposal last week.

From CC.OO. he points out that"it is a good deal, despite the high number of exits initially proposed by the bank, as well as the number of affectations, which has also been reduced".+

The ERE, which only affects BBVA's Spanish subsidiary, mainly affects the branch network. At first it accounted for 80% of layoffs, although now it has remained at 35%. From the unions they emphasize that there is a wide "catalog" of exits with which it must be avoided that there is any forced.

The employees closest to retirement, those who at the end of 2021 are over 63 years old, BBVA offers them to leave the entity with a compensation of 20 days per year worked, up to a maximum of 12 monthly payments.

The rest of the indeminizations vary according to the age of the worker. The youngest, those under 50 years old, will obtain a compensation of 40 days per year worked, with a maximum 30 monthly payments, as well as a voluntary premium of 2,000 euros per three-year period, premiums of between 5,000 and 30,000 euros according to their seniority, a premium of 15,000 euros for difficult relocation (only those over 50 years old) and a special agreement with the Social Security until the age of 63.

In the age group between 50 and 52 years, the compensation will be six times 65% of their annual remuneration level (known as NRA), up to a maximum of 320,000 euros. In addition, a special agreement will be established with the Social Security until the age of 63, in temporary income of 15,500 fixed annual euros. The premiums for voluntary membership are 2,000 euros per triennium and 25,000 euros for seniority over 10 years or 30,000 if it is over 15 years. In addition, they will have a premium for difficult relocation of 15,000 euros.

While between 53 and 54 years, BBVA proposes a temporary income of 65% of the NRA until the age of 63, a special agreement with the Social Security until the age of 63 with an increase of 3% annually and a discount on unemployment benefit or subsidy. Temporary income will be 75% of the NRA for employees aged 55 to 62, also until they turn 63. They will have a special agreement with the Social Security until the age of 63 with an increase of 3% per annum and discount of the unemployment benefit or subsidy.