Farfetch (NYSE:FTCH): The high levels of promotion on the luxury marketplace Farfetch are still at the levels of April 2020, one of the key elements that supported GMV growth in Q22020. Promotion affects positively GMV growth but negatively on margins.

 

Product availability: Many in-season retailers have a lower volume of SKU if compared to previous years, a sympthom of covid-related lockdowns that affected in Q2 production sites and inventory capacity of the supply chain. Some retailers replaced the missing inventory with SKU of older collections, this can be seen by the level of promotion (very high in the retailers that have similar levels of SKU if compared to previous years).

 

Black Friday: “black Friday weeks” are expected to start sooner this year and last longer, which would impact retailers’ margins by reducing full-price time-on-shelf of products.