Apparel and Footwear Specialist Retailers in Serbia

2020 IMPACT

Apparel and footwear specialist retailers continues to see growth, unlike most other European countries

Unlike other countries across Europe, the COVID-19 pandemic as not caused apparel and footwear specialist retailers to witness current value decline in 2020. This is because two of the largest shopping centres remained open during lockdown, meaning some consumers had continued access to stores and goods.

E-commerce becomes even more of a focus of the leading players

Prior to the pandemic, there was a significant increase in the number of apparel and footwear specialist retailers which offered the option to purchase their goods online. Some retailers even offered e-commerce only deals, where discounts on ranges were only applied when purchased through the e-commerce platform.

LC Waikiki strengthens its lead thanks to its expansion strategy and accessible pricing

In 2020, Turkish international chain LC Waikiki will retain its lead, after taking the lead from H&M Hennes & Mauritz AB in 2018. LC Waikiki arrived in the country in 2015, when it opened two outlets, growing to 22 outlets in 2018, and has continued its expansion strategy since.

RECOVERY AND OPPORTUNITIES

Positive performance projected for over the forecast period

Apparel and footwear specialist retailers is expected to see an immediate recovery as current value sales in 2021 will be higher than that in 2019. This will be in correspondence to the COVID-19 pandemic coming to an end and consumers returning to their pre pandemic lifestyles.

Although Zara is safe, other retail chains face problems in the future

Amidst the pandemic, there was a lot of talk that Zara and H&M might be forced to leave the Serbian retailing market due to the crisis caused by the COVID-19 pandemic. However, Zara officially replied to these rumours in November 2020 saying that it has no plans to withdraw from Serbia.

Retailers focus on discounts and promotions at the beginning of the forecast period

In the early stages of the forecast period, most retailers are expected to offer their goods at discounted prices in a bid to reattract consumers post pandemic and kickstart the recovery process. Furthermore, retailers will need to rid their stock that they failed to sell amidst the pandemic.