TECHNICAL WORK , EXCEL & WRITING 

Last year total $sales: 62,800,000.0

This year plan $sales: 59,660,000.0

Percentage increase/decrease: -5%

The coronavirus is still very much affecting the world in countless ways. One being the dramatic sales decline in the apparel industry. Business of fashion reports in their journal The State of Fashion 2021, that there are two possible scenarios the industry could follow. The first, a more optimistic predicts a sales decline between 0 and 5% with the latter being a later recovery and a sales decline of up to 15% (McKinsey & Company, 2021).

The US is making progress to slowly reopen and return to normal. The daily number of vaccines is increasing and the daily number of confirmed covid cases is decreasing (CDC, 2021). I believe we can be optimistic about the future based on these statistics. Pfizer also recently announced that they are lifting restrictions on the vaccine and supplying developing countries such as India and South Africa with vaccines which is vital for the world to recover at a faster pace (Hopkins, 2021).

(CDC , 2021) charts via Bing statistics

With the world reopening consumers are going to be excited to dress up in something other than athleisure for once. Common thread so collective suggests that although the accessories in luxury goods categories were hit hardest with the sales decline in the past year, aggregate data shows vertical growth in these categories in the coming years (Orendorff, 2021). Mckinsey and Company describes this serge of spending post pandemic as “revenge shopping” stating that consumers confidence in the economy is returning and they are unleashing pent-up demand (McKinsey & Company , 2021).

Consumers spending habits changed drastically in 2020. It was very unpredictable what was going to happen next so many consumers limited their recreational spending and started saving. Forbes reported that the personal savings rate shot up 20% in January 2021, the highest the rate has been in six decades (Light, 2021).With increased savings comes more consumer spending on items that are considered luxury as they can justify the higher ticket price. In addition, there is a notion that periods of restraint have historically ended in a booming world after. For example, after the Spanish flu which occurred from 1918 to 1920 came the roaring 20’s prosperity and extravagant fashions (Donaldson, 2021). This is a pattern that will likely be repeated post coronavirus pandemic.

With these things in mind as well as other factors a 5% decrease for the accessories segment of the industry seems like an accurate prediction.