The Influence of the COVID-19 Virus on the Luxury Retail Market in 2020

Abstract

On March 5, 2020 retailers' top priority has been the global spread of COVID-19 in recent weeks, which had a direct effect on the health and safety of their workers and customers.  Those concerns early in the year steered many retailers, to close their stores within China and constrain employee travel. Several weeks later, the virus has reached the U.S and other countries outside China, with 93,000 cases tracked worldwide as of March 4, 2020 according to the World Organization.  Many details about the disease, which has flu-like symptoms remain unknown, and health officials are still investigating how far and for how long it might spread. But as more cases of the disease have been reported globally, problems for the retail industry have materialized. For mass merchants like Walmart, the virus could have positive effects, since they are sources of groceries and disease-fighting essentials that consumers.  However, the luxury retail market has suffered tremendously.   One of the biggest signs of the industry's response has been the closure of fashion weeks. and many Luxury houses have closed their stores and canceled their shows.  This Research paper will investigate the crisis of COVID -19 and its influence on the luxury retail market particularly.