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The Impact of Anomalous Autumn on Winter Clothing Sales and the Call to Postpone Winter Sales to Recover Lost Profits

The anomalous autumn, with almost spring-like temperatures, kills purchases of winter clothing. And shopkeepers are asking to postpone the sales to have enough time to recover lost sales: this is proposed by Fismo, the Federation of Confesercenti clothing stores, in a letter to the president of the State-Regions conference Massimiliano Fedriga, calling for the postponement of the winter sales the first week of February.

«Launch of winter collections blocked»

«The anomalous climatic conditions, with average temperatures higher than normal, continued throughout September and October, negatively impacting the launch of the winter collections» explains Benny Campobasso, national president of Fismo Confesercenti. In terms of political – trade union importance and organized strength, Fismo is one of the strongest trade unions in Confesercenti, with over 24,500 members out of approximately 165,500 companies operating in Italy. Campobasso continues: «Sales of autumn-winter garments, footwear and accessories are in sharp decline in all territories, with peaks of up to -20% compared to last year. Climate change adds a new element of difficulty for fashion shops, already held back by the high cost of living, which restricts the budget dedicated by families to clothing.”

Giammaria (Confesercenti Roma): «We have been raising the problem for years»

A problem also raised with concern by the capital’s shopkeepers where some – all it takes is a walk in the shopping streets to realize this – have even given up on displaying winter clothes in the shop windows. They continue to dispose of the summer collections. And it even produces an alienating effect to see wool sweaters and heavy coats on display while you can easily go out in a short-sleeved t-shirt. Obviously what appears to be a curious anomaly takes on worrying aspects for the hundreds of operators in the sector. Valter Giammaria, president of Confesercenti Roma and Lazio, comments: «For years we have been raising the issue of sales, which for retailers constitute 30% of the annual profit. We understand how important they are. Our idea is to dedicate two months, February and August, to discounts. We also point out the unfair competition from multinationals who do not pay taxes in Italy, while traders with street windows, in addition to paying their taxes to the State, incur costs for rent and staff…”.

«Neighborhood shops are at a disadvantage compared to chains and e-commerce»

«By postponing the start date of the winter sales by a month, companies, heavily penalized by the poor sales at the beginning of autumn, would be able to recover part of their profits. With the sales set for the beginning of January, there is no time to market the goods at full price” reiterates Campobasso. It could become a structural measure: «End of season sales, both winter and summer, represent an opportunity of great economic interest for consumers and commercial operators only if they are carried out in the right period. They currently begin in excessively early periods compared to the real “end of season”, a mismatch that is increasingly evident due to climate change. Neighborhood shops, then, are at a disadvantage compared to large-scale distribution and eCommerce platforms, which have the economies of scale to allow themselves to sell at very competitive prices and can count on reduced personnel and infrastructure costs and the lack of a tax regime. uniformity between physical and online commerce”.

«Shops no longer open: this is how city centers are dying»

The appeal is accompanied by data, which is certainly not comforting: «Textile, clothing and footwear shops are not only closing, but are no longer even opening: according to data from the Confesercenti Observatory, in 2023 there should be only 2,167 registrations of new businesses , -3,349 compared to ten years ago. We need to intervene to protect a sector that not only represents an important part of the country’s economy, but gives impetus to the life of city centres.” Proposals? «In addition to reviewing the rules on sales, in our opinion it is necessary to intervene on the excess of promotions that is distorting the market. And introduce a preferential tax regime for small neighborhood shops with a turnover of less than 400 thousand euros per year.”

2023-10-31 11:29:22
#Abnormal #heat #shopkeepers #move #winter #sales #February

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