Retailers across the country have felt the tough economic blow that has resulted because of the ongoing COVID-19 pandemic and its associated lockdowns and mandatory public health measures.
But the impact on the industry hasn’t been relegated to just the stores. It’s had a domino effect with the pandemic causing turmoil and hardship as well for a variety of other industries associated to retail, such as wholesalers.
Lisa Wiseberg, owner of LWS Fashions based in Toronto, is a multi-line sales representative who sells men’s and women’s clothing to retail stores.
“People have to realize that it’s just not the retailers that get hurt in these times,” said Wiseberg, who has been in the industry for about 20 years, “because if the retailer isn’t open or the retailer isn’t selling then the wholesaler is getting just as affected because we’re not getting the repeat business or they’re not bringing the goods in. They have to hold goods back because there’s no business.
“If a retailer is suffering, of any kind, even a restaurant, whoever supplies them the goods is also suffering. It’s not just a story about retailers closing up their stores which obviously is horrible. But that means with that store closing or not opening or not selling their product the way they were last season, that means it is affecting everybody who supplies them, which is me. So my revenue has dropped hugely.”
Wiseberg said the whole industry is suffering, not just retail.
“Vendors aren’t getting paid. So we’re having to stretch our credit lines to retailers because they have no money. So it’s a huge domino effect. I think the clothing industry should know about this effect to be honest because it’s affecting all of us and we have to work together,” she said.
“How do we work together? How does the vendor last? If the vendor doesn’t get paid, if I ship out $5,000 to a retailer and then that retailer can’t open or the consumer isn’t buying, how does that retailer pay the vendor and then how much money can the vendor hold in paper until we get paid or we go down? So it really is a huge problem right now in the world of clothing and anything they are deeming non-essential.”
The pandemic is affecting every single area of business associated with retail — landlords included.
Ivanna Gecelter, owner of Evolve Showrooms, said that although she has not been affected to the extent that retailers have because of the pandemic “the retailers are my clients so it’s almost like a domino effect.”
“When they’re affected, we’re affected. They have to cancel their orders or they have to put their orders on hold which obviously would affect us and our suppliers. It’s almost like a domino effect when this happens but it’s definitely not as much as they’re having unfortunately with having to be closed and open, closed and going through what they’re going through,” she said.
Evolve is a Toronto-based, full-service sales agency, bringing premium international men’s and women’s clothing and accessories to retailers across Canada.
As a wholesaler, Gecelter acts as the middle man between the retailer and the brand. Her business has 15 brands that she sells to retailers. Most of the brands get booked six months in advance for the next season. She’s been in the industry for about 15 years but has had her own showroom for about three and a half years. The showroom is a large space with samples of each brand.
“Things that were booked six months ago for this upcoming spring season have now had to be put on hold because the retailers are closed and they can’t take it so we’ve had to put those orders on hold or cancel them and so there’s a lot of uncertainty for them to buy or put more money into buying new product because of what’s happened,” she said.
“We haven’t been able to see our buyers in person. We’ve had to do virtual appointments with them. That’s all been a whole other ball game for them to see the brands they’re going to bring into their stores and really understand the feel, and the fit and the quality of what they’re buying. It’s been different.
“My business rides on the retailers. If they don’t survive through this, then I won’t survive through this. It really is a domino effect. A lot of them have been doing an incredible job pivoting through this and going online, working really hard on social media and things like that. And that thankfully saved me as well. But they have to be open at some point for us to continue growing our businesses.”
And try being a sales rep to the Tourism industry. The effects are even greater as we are sure there will be no tourism until next year, especially in the cruise ship industry. My lines make namedropped clothing and hard goods for retailers on the street and in terminals and stations. This part of my business is at zero. The rest of my business is in wholesale giftware which is also not strong either, so altogether down 75% with those companies. All this hype about the restaurant workers is just the tip of the iceberg and no one is advertising to help wholesale reps!
I am thankful for some Government assistance. I am actively looking to evolve my business. It is essential to survive.