CHAPTER 1

INTRODUCTION
1.1 Background of the study
Clothing Stores (March 27). Firstly COVID-19 was detected during December in Wuhan,
China. Later the impact of corona virus has been spread worldwide impacting every
sectors of daily life including small businesses like fancy stores (clothing store). For the
safety of people government have issue an order to shutdown all the stores including
clothing store except essential stores like department stores which provide basic
household items under strict rules and regulation.

The COVID-19 pandemic has also had significant economic consequences globally. In
particular, the world economy faces a negative supply stock because of the pandemic,
which has forced many business stores like restaurant, department stores, clothing
stores to keep shutting down.  More generally, because of COVID-19, people have been
advised to maintain “social distancing” with severe effects on the business of clothing
store and others.

The restricted movement and lockdowns across worldwide constitute both demand side
shock and supply side shock. Clothing Stores face falling sales during COVID-19
pandemic; several retailers have been stuck with last season stocks. People are wary of
entering stores and may continue to prefer online shopping. During the pandemic there
is both shortage in demand and supply for the retailers as well as for customers.

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1.2 Statement of problem

In this pandemic situation of covid-19 every business activities are closed due to
lockdown and clothing stores are also one of them. To deal with this situation and to run
clothing store. The effect of covid-19 has spread rapidly throughout the world impacting
every aspects of daily life activities, including business of clothing stores. In an attempt
to continue business of clothing store following safety protocol which has set by the
government.

Clothing stores have been facing downfall on sales, stores closure , several retailers have
been stuck with last season stocks, some of the clothing store can’t keep up with
demands made by customer. Some of clothing stores cannot pay their rent and the
employee who work on clothing stores are losing their job, while some clothing stores
are trying to keep their employee employed. While customers wary of entering stores
and may continue to prefer online shopping because of safety concern.

1.3 Objective of study

The main objective of research to investigate effects of “covid-19 pandemic on clothing

stores “

 To analyze what effect does covid-19 pandemic has made on clothing store.
 To examine the effect of covid-19 on sales of clothing store.
 To find out their operating channels while buying clothing apparel.
 To examine what preventive measures they take during the pandemic
 To examine the adjustments they have made since the beginning of pandemic.
 To find out the source of their supply during the pandemic.

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1.4 Literature review

In business and organizational research, risk is generally defined in terms of negative

variations from the expected outcomes (Miller 1992). This means that only the incidents
that have negative impacts on the outcome of the organization’s operations are
considered as a risk (Chen, Sohal & Prajogo 2013; Guertler & Spinler 2015). Disruption,
meanwhile, is a particular type of risk that involves catastrophic events (Chen et
al. 2019; Meena & Sarmah 2014; Scholten et al. 2014; Paul et al. 2019b and c). Disruption
risk can impact the sustainability of the supply chain (Moktadir et al. 2018).

Disruptions, in this sense, have been investigated from two main perspectives in the
literature. The first perspective focuses on the geographical location of the disruption.
More specifically, two types of disruption scenarios based on location have been
explored: local disruptions and local plus global disruptions (Sawik 2011; Paul et al. 2016;
Paul et al. 2017). In the case of local disruption, the events at issue involve a single
factory or supplier, such as a fire or the breakdown of machinery at a specific plant. On
the other hand, for the scenarios that entail both local and global disruptions, all or
some of the supply chain partners across the globe are simultaneously impacted (Ritchie
& Brindley 2000; Ivanov 2020a; Manuj & Mentzer 2008; Zhao et al. 2013). The other main
perspective on disruption considers the functions of the supply chains that are affected.
In this connection, research has considered supply-side disruption (Pal et al. 2014;
Gülpnar et al. 2014; Ray & Jenamani 2013; Wang & Yu 2020), production disruption (Paul
et al. 2019b; Bao et al. 2020), transportation and distribution disruption (Chaghooshi &
Moein 2014; Wilson 2007; Hishamuddin et al. 2015), demand-side disruption (Paul et
al. 2014a and b; Kirchoff et al. 2011; Ray & Jenamani 2016), and the combination of two
or more the previously listed types of disruption. This perspective focuses on how a
disruption in a particular function of a supply chain can imbalance the entire supply
chain network, due to the ripple effect it creates (Kim et al. 2014; Dolgui et al. 2020; Das
et al. 2019; Ivanov et al. 2019; Pavlov et al. 2019).

To overcome a company’s vulnerability to disruptions, it is imperative to formulate and

implement strategies for managing disruption (Park et al. 2016; Paul and Rahman 2018;
Paul et al. 2018). Several such strategies have already been recommended and tested in
the literature. For example, inventory stockpiling, diversification of supplies and
suppliers, and creating back-up suppliers have been suggested as ways of managing
disruption risk (Tomlin & Wang 2009). Moreover, strategies such as emergency sourcing
(Huang et al. 2018; He et al. 2015), buffer inventory (Darom et al. 2018; Paul et
al. 2015a, 2015b), and reserve capacity (Paul et al. 2014a, 2014b; Hishamuddin et

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al. 2013), as well as collaborative strategies such as on-time and quality information
sharing (Sarkar & Kumar 2015; Chowdhury et al. 2016) and flexibility (Glenn et al. 2009),
have also been suggested for purposes of disruption management. The proper
configuration of resources and infrastructure is also required, along with disruption
orientation, to ensure that firms can manage disruptions efficiently (Ambulkar et
al. 2015). These strategies for managing disruption can make a supply chain more
resilient (Tang 2006).

According to the Bangladesh Garment Manufacturers Exporters Association (BGMEA),

there has been $3.18 billion in cancelled or suspended orders, which is equivalent to
982 million pieces [1]. On 29 April 2020, the BBC reported that up to half of the 4 million
garment workers in Bangladesh, mostly women, may lose their jobs [2]. And, this crisis
isn’t just affecting workers in garment factories. It is also having a profound effect
further down the supply chain on some of the workers with the most precarious jobs –
the homeworkers who are unable to access support from brands or the government as
they aren’t in legally recognised employment; the migrant workers who have lost their
jobs but are isolated hundreds of miles from their families; and the cotton farmers
unable to harvest their fields. 
This pandemic only proliferates the need for industry-wide, systemic, change. Many of
the human rights issues we look at throughout this course have gotten worse since the
beginning of the global pandemic.

Transparency is a vital step towards a more sustainable future for the industry. What we
can’t see, we cannot fix.
If major brands and retailers publish information about who their suppliers are and how
they do business with them, then brands can be held to account for leaving their
suppliers and supply chain workers in the lurch during such a terrible public health and
financial crisis.
Since the outbreak, fashion brands have reportedly stopped taking deliveries while
clothing is piling up in warehouses during the lockdown. By the time stores reopen
these products may well be considered ‘out of season’. This begs the question: what will
happen to all of these perfectly good items and all the material that was used to make
them? Will they be sold, reused, given to charities, go to landfill, be incinerated,
recycled? Fashion already has such a huge waste problem; will this crisis exacerbate the
problem or will companies accelerate the development of better textile recycling
technology?

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Furthermore, as people are forced to stay at home and retail stores continue to be
closed around the world, the demand for clothing has plummeted. It is causing people
to reassess and reprioritise what they spend money on. This could result in fashion
trends slowing down for a while and potentially influence brands to focus on delivering
fewer, better quality products to remain profitable. Or, things could go back to business-
as-usual with a focus on speed and high- volume production. However, we suspect that
consumers and brands will have to adapt to a new normal, what that looks like only
time will tell but taking action to mitigate the issues we will learn about throughout the
course, will be more important than ever.

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1.5 Research methodology

"Research Methodology is the Scientific method is a systematic step-by- step procedure

following the logical processes of reasoning". This section deals with rationale for the
selection of study area, Population and sampling, tools and techniques of data collection
observation, interviewed at last data presentation.

Research methodology is the sequential procedure and methods to be adopted in a

systematic study. Methodology involves methods and technique of data collection and
analysis. In another words, methodology is also defined as a process of completing the
study. It describes the steps to carry out the research work. A systematic research study
needs to follow a proper methodology to achieve the pre-determined objectives.

1.5.1 Research design

To serve the purpose of research paper descriptive research design is used. Primary data
is collected with the help of close ended questionnaire.

1.5.2 Sources of data collection

This study is mainly focused on the primary data. Therefore the main tool used for the
data collection is questionnaire.

1.5.3 Sample size

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The study involves sample size of 30 respondents. The study is taken from the retailers
through questionnaire form.

1.5.4 Methods of Data Analysis

The collected data has been processed manually. The information has been edited,
coded and tabulated manually. Date and information have been presented in various
units and forms. A number of mathematical tools such as tabulation, graphical
presentation has been employed as analytical tools. The data and information have
been presented in table, pie chart.

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 CHAPTER II
DATA ANALYSIS AND MAJOR FINDINGS

The objective of this chapter is to give the results of the data analysis and interpret the data into
findings. Besides, it also answers the research questions and tests the proposed hypotheses.
Mainly, the statistical methods of analysis were discussed, which included descriptive analysis,
correlation analysis and regression analysis through SPSS version 20.

2.1 Through which social media site are you most influenced by when purchasing fashion

Table 1 : social media site are you most influenced by when purchasing fashion.

  Frequency Percent  
facebook 17 56.7
instagram 9 30
other 4 13.3
Total 30 100  

13%

facebook
instagram
30% 57% other

Fig 1: social media site influence when purchasing fashion.

Table 1 and figure 1 shows the social media site influence to the retailers while purchasing fashion. Out
of 30 respondent 57% retailers are influenced by facebook, 30% were influenced by instagram whereas
13% retailers are influenced by other social media sites.

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2.2 Which market channels do retailers operate through.

Table 2: operating market channels.

  Frequency Percent  
physical stores 13 43.3
brand website 6 20
3rd party 11 36.7
Total 30 100  

37%
43% physical stores
brand website
3rd party

20%

Fig 2: operating market channels.

Table 2 and figure 2 shows the marketing channels of retailers. Out of 30 respondents 43% operate
their market through going in physical stores, 20% operate their market channel through brand website
and other 37% retailers operate their market through 3 rd party.

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2.3 primary verticals operate by clothing store.

Table 3: primary verticals

  Frequency Percent
apparel fashion 11 36.7
sports wear 6 20
foot wear 5 16.7
all of above 8 26.7
Total 30 100

27%
37% apparel fashion
sports wear
foot wear
all of above
17%

20%

Fig 3: primary verticals

Table 3 and figure 3 show the vertical did the clothing store operate in. Out of 30 respondent 36%
clothing store operate in apparel fashion, 20%on sportswear, 17% on footwear and other 27% operate
on all of the above verticals.

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2.4 Covid effect on clothing store

Table 4: effect on business

  Frequency Percent
most negatively 8 26.7
somewhat negatively 13 43.3
mostly positive 4 13.3
somewhat positive 5 16.7
Total 30 100

17%
27%
most negatively
13% somewhat negatively
mostly positive
somewhat positive

43%

Fig 4: effects on business

Table 4 and figure 4 show how covid -19 has effect the business of clothing store. Out of 30 respondent
27% of clothing store have been affected mostly negatively, 43% of clothing store have been affected
somewhat negatively, 13% of clothing have been affected mostly positively and other 17% of clothing
store have been affected somewhat positive.

2.5 measures implemented during pandemic.

Table 5: types of measures implemented during pandemic.

  Frequency Percent
physically store closed 20 66.7
salary reduction 5 16.7
ecommerce facility closed 1 3.3
reduction in workforce 13.3 13.3

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Total 30 100

34%
physically store closed
salary reduction
51% ecommerce facility closed
reduction in workforce
3%
13%

Fig 5: preventive measures implemented during pandemic.

Table 5 and figure 5 show the preventive measures implemented by clothing stores. Out of 30
respondents 51% of clothing store have been closed, 13% of clothing store reduce the salary of its
employee, 2% of clothing store have closed their ecommerce facility and 34% of clothing store have
reduce their workforce.

2.6 Adaptations to the new normal.

Table 6: adaptations to new normal.

  Frequency Percent
get back to business as asap 10 33.3
focus on moving more business to online channels 9 30
focus on getting physical store back 8 26.7
focus on retention 3 10
Total 30 100

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 10%

33% get back to business as asap

focus on moving more
27% business to online channels
focus on getting physical
store back
focus on retention

30%

Fig 6: adaptations to the new normal.

Table 6 and figure 6 shows that the how they will adapt the new normal. Out of 30 respondents 33% of
clothing store will try to get back to business as soon as possible, 30% of clothing store will focus on
moving more business to online channels, 27% of them will focus on getting physical store back and
other 10% will focus on retention.

2.7 when did they expect the new normal will immerge.

Table 7: expectation of new normal.

  Frequency Percent
in the mid of 2020 1 3.3
in the end of 2020 12 40
2021 17 56.7
Total 30 100

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 23%

1
2
3

77%

Fig 7: expectation of new normal.

Table 7 and figure 7 shows the prediction of retailers predict when the new normal immerge. Out of 30
respondents 23% predict that pandemic will end in the end of 2021, where others have expect that it
will end in 2021.

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 CHAPTER III
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter summarizes the whole study, presents the conclusions and forwards the
recommendations on the basis of the major findings.

3.1 Summary of Finding

It is clear that the covid-19 pandemic having a significant impact on business like
clothing store affecting everything from the sales of goods to demand and supply,
workforce etc .Through this survey of “ effect of covid-19 on clothing store” to assess
the change in business of clothing store since covid-19 declare as a pandemic, after
collecting survey of 30 respondents (retailers)it has said that the almost half of the
stores have been closed during the pandemic, almost 45% of clothing stores has been
effected somewhat negatively, where only few are on somewhat positive. The sales of
the products have been falling, where the retailers has struggling with previous year
stock. On the other hand the clothing stores cannot keep up with the taste and new
demand of its consumer. The study is mainly based on primary sources of data. The
primary data are taken from questionnaire. The collected data are analyzed by using
financial and statistical tools after collecting the data from different sources. Clothing
stores is one of the needed product in daily life activity. The study was carried on
clothing stores of lamjung, besisahar. The study shows the sales, profit or loss, from
which channel do they operate, what preventive measures they are implementing to cope
with pandemic was analyzed through the different table, pie chart and trend line.

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The Findings of the Study are as follows:
 It shows the social media site influence to the retailers while purchasing
fashion. Out of 30 respondent 57% retailers are influenced by facebook,
30% were influenced by instagram whereas 13% retailers are influenced
by other social media sites.

 It shows the marketing channels of retailers. Out of 30 respondents 43%

operate their market through going in physical stores, 20% operate their
market channel through brand website and other 37% retailers operate
their market through 3rd party.

 It shows the vertical did the clothing store operate in. Out of 30
respondent 36% clothing store operate in apparel fashion, 20%on
sportswear, 17% on footwear and other 27% operate on all of the above
verticals.

 It shows how covid -19 has effect the business of clothing store. Out of 30
respondent 27% of clothing store have been affected mostly negatively,
43% of clothing store have been affected somewhat negatively, 13% of
clothing have been affected mostly positively and other 17% of clothing
store have been affected somewhat positive.

 It shows the preventive measures implemented by clothing stores. Out of

30 respondents 51% of clothing store have been closed, 13% of clothing
store reduce the salary of its employee, 2% of clothing store have closed
their ecommerce facility and 34% of clothing store have reduce their
workforce.

 It shows that the how they will adapt the new normal. Out of 30
respondents 33% of clothing store will try to get back to business as soon
as possible, 30% of clothing store will focus on moving more business to

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 online channels, 27% of them will focus on getting physical store back and
other 10% will focus on retention.

 It shows the prediction of retailers predict when the new normal

immerge. Out of 30 respondents 23% predict that pandemic will end in the
end of 2021, where others have expect that it will end in 2021.

3.2 Conclusion
The covid-19 pandemic has greatly affected the business around the world one of
them is clothing stores. Clothing stores of lamjung besisahar has also been affected
by the covid-19. So some of the clothing stores of lamjung, besisahar trying to
stabalize , others are still struggling to cope up with the pandemic. Almost all of the
stores are willing to open physically and some of them are trying to transform into
online marketing. Half of the stores believe that there will be loss this year, and
other half is trying to maintain their sales. Some of the stores use preventive
measures like reduction on work force, cutting salaries of their employee to cut off
cost.

3.3 Recommendation
 In this situation of pandemic where physical communication is not possible
so, communicate yours customers through facebook, google hangout or
other social platforms.

 Protect your employees by establishing a “work from home” option that

includes communication, availability.
 If you have the major loss because of the pandemic, you may be eligible
for business insurance to cover unexpected major events.
 Communicate with the suppliers, partners, local officials every day to stay
on top of things, and help you implement strategies and prepare until the
virus is contained.
 In this pandemic support your customers through social media platform,
maintain social distance and make flexible payments through the e-pays.
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