Impact of COVID-19 and economic crises on Lebanon’s retailers

ENAR

Storefront banners and text messages announcing extended clearance sales or “70 percent off” all merchandise have been part of Lebanon’s retail landscape since 2012. Executive has been reporting on the dwindling purchasing power among Lebanese and the overall decrease in tourists from wealthy GCC countries as the reasons behind the gradual decline of the retail sector rather consistently for almost eight years now (see articles from 2012, 2014, 2017 and 2019). While this state of slow decline might have dragged on for a while longer, the intensification of Lebanon’s ongoing economic crisis—in addition to the COVID-19 crisis that has negatively impacted fashion retail worldwide—has exacerbated an already tough situation and has pushed the retail sector to the edge of a cliff. Retailers Executive spoke to in early July described an almost impossible situation. The increase in the foreign exchange rate has significantly driven up the cost, and hence the price,