Monsoon Accessorize is reportedly on the brink of administration.
Sofie Willmott, Lead Retail Analyst at GlobalData, a leading data and analytics company, offers her view on this news;
“Monsoon Accessorize was one of the many retailers looking unsteady on its feet prior to the COVID-19 pandemic, with its CVA launched in July 2019 not enough on its own, to secure the long term future of the business. Clothing & footwear is set to be the worst hit retail sector by crisis with spend forecast to fall over 30% this year and Monsoon’s focus on occasionwear has left it particularly exposed to the slump in demand. A significant proportion of Monsoon’s range is designed with weddings and other special occasions in mind and with social gatherings on hold for the time being, it is at a disadvantage and cannot leverage other categories like loungewear and activewear, as other clothing specialists have done.
“Prior to the crisis Monsoon was gradually becoming less relevant in the UK clothing & footwear market, with the brand lacking appeal and facing increased competition from emerging players such as Sosandar, Mint Velvet and Hush – making customer acquisition and driving loyalty a challenge. The retailer is reportedly planning to ask landlords for rent-free deals over the next few months to increase its chance of survival but Monsoon is unlikely to be a retailer that clothing shoppers rush back to. With social distancing set to remain throughout 2020, special occasions will be pushed back and Monsoon will struggle to encourage spend.”