Store reopenings in Germany and Austria indicate what awaits UK and US retailers

The first stores in Vienna and Berlin are open again, after they were forced to close about a month ago due to Covid-19. Now, fashion retailers are mainly concerned with how sales and footfall will develop over the coming weeks and months. Here are the impressions from the first days of the shop reopenings.

The green shop concept Glore

“In terms of sales, it was almost like a normal Monday for us,” said Glore founder Bernd Hausmann over the phone on Tuesday. “People are excited that we’re open again, but many are also more reserved than usual and asked if they could come in.” The stores in Hamburg, Frankfurt, Stuttgart and Heidelberg have ropened since Monday, while the two in Bavaria and Switzerland remain closed.

Hausmann only had a few days to deal with the hygiene regulations of each federal state: In Baden-Württemberg, it is necessary to install a protective shield at checkout, which was not the case in Hesse or Hamburg. Meanwhile, all German states opted to require people to wear face masks while shopping. Masks are given to all Glore customers and hand sanitizers are available at the door. Card devices and clothes hangers are disinfected after use. At the beginning, employees were slightly nervous about how customers would respond to the new measures, which, two months ago, would have seemed extreme. But they have accepted everything well, said Hausmann.

”The big, exciting question that drives every fashion retailer is what the sales will be like. Yesterday, we were relieved when we realized that for the time being everything seemed just like normal - because we were all afraid that hardly anyone would come into the store,” he said. In the upcoming week, he is excited to see whether sales and usual high-turnover days, like Friday or Saturday, will be the same. “We are assuming that it will be a little less. Procedure-wise, it’s not even possible to generate the same sales as before. A Saturday where the store is completely full and people are queuing in front of the dressing rooms is not possible anymore, since not that many customers are allowed in.”

What can be done about the systemic issues in the fashion industry raised by the coronavirus pandemic? Aside from not cancelling any deliveries, Glore has joined the Green Alliance, a movement that wants to decelerate the fashion industry. Though Hausmann believes that, at this moment, it’s not possible to say whether this will actually happen. “The situation is so dynamic right now. You have to reassess it daily and then make decisions.”

Sustainable fashion retailer Glore was founded in 2006 and now has more than 35 employees. Currently, there are nine locations in Germany and Switzerland.

Modehaus Kutsam

In neighboring Austria, shops up to 400 square meters were allowed to reopen after Easter. Therefore in Sierning, Modehaus Kutsam and its 300 square meter store has had more time to gain experience with the new changes. “We are now in our second week and 50 percent below target,” said managing director Johannes Behr-Kutsam. “Normally we would have a turnover of about 2,500 euros per day and currently it’s only about 1,000 to 1,200 euros. But we also only have one employee working, the others are still at home. So at least the result won’t be worse when we reopen.” Companies in Austria can also apply for the so-called 'Kurzarbeit', under which the government subsidizes part of the pay of workers who would face lay-offs otherwise.

Additionally, the store has shortened its opening hours and now sells face masks, which must be worn in Austria. “One of the first people who waited by the door when the store opened was a man who tore his pants while working from home,” said Behr-Kutsam. “Then, little by little, the regular customers came in, already starting to look for summer clothes.”

The retailer’s other branches are larger than 400 square meters and have to remain closed. But going off of the developments in Austria, Behr-Kutsam expects the other four stores to reopen on May 4, however with fewer employees. As there are fewer reasons to go out these days, demand will remain modest. In Austria, meeting friends is not yet allowed, but shopping is. So the situation is still a bit absurd, but the demand will increase once the restaurants reopen,” he said. “But by the end of the year I don’t expect us to reach the same figures as last year.”

Founded in 1959, the family owned Modehaus Kutsam operates five stores in Bad Hall, Kirchdorf, Sierning, Schwertberg and St. Valentin. The Austrian fashion retailer has a total of 65 employees.

Fashion group Esprit

This week, fashion group Esprit reopened around 50 of its self-managed stores in Germany. As regulations vary from region to region, the company is checking store by store to see which ones could be opened again.

”We expect the customer sentiment to be less than before the crisis. And indeed, yesterday and today’s traffic in our stores is less than before the lockdown. We will be watching carefully to see how the coming days and weeks develop,” wrote a spokeswoman of Esprit in an email on Tuesday.

In the past few days, the employees worked hard to implement the security measures required by the various federal states, according to the company. All in all, customers are also respecting Esprit’s new shopping guidelines, which include masks, increased cleaning personnel and disinfectants, as well as employee training.

“We expect customer sentiment to be different post Covid-19 but we are pleased to re-open stores,” said Esprit. “With our 360° oriented "happy to #reconnect" campaign, which we will launch at the beginning of May, we will highlight the comprehensive hygiene measures in our stores. We want our customers to feel comfortable when they return to the stores to shop after this difficult time.”

Founded in 1968, Esprit employs about 4,900 people worldwide. The fashion group, with headquarters in Ratingen and Hong Kong, operates 389 stores and has around 4,800 points of sale in more than 40 countries.

This article was originally published on FashionUnited.DE, translated and edited.

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Photo credit: David Visnjic / Andolu Agency via AFP