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Burberry has said the coronavirus is having a devastating effect on the luxury goods market, as wealthy Chinese consumers stay away from shops, and travel restrictions curb overseas shopping sprees, Zoe Wood reports.



The British company closed 24 of its 64 stores in mainland China and those that remained open were operating with reduced hours because shopper numbers had plunged 80%. None of the group’s employees in China had been diagnosed with the illness, it said.

The chief executive, Marco Gobbetti, said: “The outbreak of coronavirus in mainland China is having a material negative effect on luxury demand.



“While we cannot currently predict how long this situation will last, we remain confident in our strategy. In the meantime, we are taking mitigating actions and every precaution to help ensure the safety and wellbeing of our employees.”