Shifts in fashion retail continue as Levi Strauss & Co sees European ecommerce sales rocket up by 35% during lockdown, as consumers sort out its clothing D2C.
However, the company reported an overall 68% fall in revenues across the continent, prompting a 15% reduction in staff.
The San Francisco-based retailer said that it would be cutting 700 non-retail, non-manufacturing jobs to generate savings of $100million a year as it, like so many others, struggles to combat the impact of the store closures during lockdown.
Instead, the company is focussing on its digital transformation, looking to AI and data science to try and bring its brand to Gen Z-ers. It is also looking to focus on sustainability as a selling point to this group.
In a statement, Chip Bergh, President and CEO of Levi Strauss & Co, said: “We started the year with strong momentum, but the global pandemic and economic crises had a significantly negative impact on our second quarter results, as our stores and most wholesale doors were closed around the world for the majority of the quarter.”
Bergh continued: “I’m proud of how the team stepped up in response, accelerating our activation of key e-commerce and omni-channel capabilities, proactively cutting costs and managing cash smartly, and finding innovative ways to connect the Levi’s brand with its fans
He concludes: “The pandemic is accelerating retail landscape shifts and consumer behaviour in ways that play to the strength of the Levi’s brand. And we are doubling down on our digital transformation, incorporating the power of AI and data science, and leveraging our iconic brands to have an even stronger focus on Gen Z and sustainability. We believe this will enable us to further grow our market leadership position and emerge from this crisis a stronger company.”
