As Europe begins to emerge from lockdown, early data shows that retail, one of the hardest hit sectors, is showing signs of recovery in demand. The pattern is similar to that seen in China when its lockdown was lifted in April. While this is clearly positive, time will tell how much of this recovery is just pent-up demand that will subside and how much of it is sustainable as furlough support fades. For luxury, however, the absence of big-spending Chinese tourists that account for as much as 40 per cent of sector demand makes the near-term outlook more uncertain.
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