The impact of Covid-19 has impacted all industries and has significantly affected the global economy. The retail industry has been hit hard, with all stores being forced to close that are considered ‘non-essential’. This has put many jobs at risk, with the result of many people struggling to survive. In the fashion sector, sales have dropped significantly with the high street becoming deserted. This meant increased uncertainty for employees working in fashion retail. Arcadia Group, owned by Sir Phillip Green which includes several brands such as Dorothy Perkins, Topshop and Miss Selfridge employs around 20,000 people. They have stopped payments towards the company's pension scheme to retain cash for employees. Topshop employee Bethany Richardson, who works at the Leamington Spa store was advised to stay off work from 16th March. "I was living with someone who had symptoms so following government advice, I had to self-isolate for 14 days which Topshop supported." "I was meant to return to work on the 30th, but the store closed on the 21st and one of the managers called me to explain the situation, but they didn't have any details on pay or how long we would be off." According to Nosto, which analysed trends in the Fashion, Apparel & Accessory industry between the 1st-20th March 2020, the UK saw a drop of 29% in sales. Major fashion retailers such as River Island and Primark have stopped deliveries as an estimated £10bn of clothing are piling up in warehouses. Many continue to trade online, including New Look and Next; however, have promoted on their sites that deliveries are expected to take longer due to reduced staff and difficulties in protecting workers. Head of Retail and Wholesale at BDO LLP, Sophie Micheal said how COVID-19 has made retailers cautious. "The outbreak had an immediate impact on consumer demand for discretionary items and for most retailers, they are having to rely solely on non-store changes and adapt aggressively to survive." Department store Debenhams has filed for administration for the second time this year, with the store already closing 22 stores. The company decided to make this move to prevent going bust whilst it's 142 UK stores are shut. "For now, businesses and consumers will be looking to the government for help and clarity; although many will welcome the extent of government support, most if not all retailers will still carry heavy costs associated with inactive shops," Sophie said. Since 20th March, the UK government announced a Job Retention Scheme to support UK employers whose businesses have been severely affected. The scheme helps employers to furlough employees 80% of their monthly wages of up to £2,500 a month. Bethany explained that the scheme will help pay for her postgraduate course at The University of Law, Birmingham. “I was slightly worried about not being paid as I need the money to pay for my course but from 3rd April, I am now a furlough employee.” “I will receive 80% of my wage which has been offered for three months and they will pay our full wage for the first two weeks of the store closing.” However, a recent study by YouGov showed that 7 in 10 18-24-year olds worry that the pandemic will harm the job market and cause higher unemployment for a long time. 21-year-old Beccy Middleton, a Sales Advisor at Topshop Birmingham says the lack of income is worrying. “As a student, I still have bills I need to cover and I was hoping to go into the Photography field after I finish uni this year; however, due to job shortages I will have to stay in retail until I find something.” However, 22-year-old Chace Howes; who works at Topshop Leamington and also a Psychology student took a positive approach to the pandemic. "The situation has helped my university lifestyle as being off work has given me the time to focus on my dissertation and exams." "The store being closed hasn't affected my employment either, I've just lost out on extra hours I would do in a week." The lockdown has added pressure on retailers as fashion brands have been hit hard by profit, the security of their employees and the future of their business. Businesses are struggling to pay for overhead costs and have the uncertainty on when they will re-open again or be at risk of going into administration. AuthorPriyanka Patel - Editor for AURA
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