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Study: Coronavirus will cost retailers in Europe 4 billion dollars

UNITED STATES (OBSERVATORY NEWS) — A supply disruption caused by the Corona virus is expected to lead to a sales loss of 3.26 billion pounds ($ 4.24 billion) to European retailers in the six weeks ending April 20, as China is still struggling, a study found on Friday. To resume production at full capacity.

The rapid spread of the Coronavirus is fueling fears of a pandemic, with five countries registering the first cases on Friday and the World Health Organization warning that it could become global and Switzerland’s cancellation of the Geneva Motor Show.

Estimates in research conducted by Britain-based digital freight forwarder Zincargo indicate that the cumulative effect of sales loss for retailers between March 9 and April 20 in Germany could exceed 728 million pounds, more than 445 million in France and 253 million in Britain, Where the total loss in Britain and the European Union is expected to reach 3.264 billion pounds.

Zankargo said electronics, clothing and furniture are the three commodity categories most affected by supply chain problems.

“The main factors of the decline so far are low production capacity (in China) at a time when factories are finding it difficult due to a shortage of workers and new regulations,” Richard Vatal, commercial director of Zincargo told Reuters. But while production capacity is close to 85 percent in these areas, we now expect damage to be caused by transport disruptions.”

Zincargo based its estimate of expected losses on goods that had run out due to a shortfall in production and transportation.

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