- Major retailers across the U.S. are shutting down their stores in response to the coronavirus outbreak.
- Others are reducing store hours or pitching in to offer space for virus testing.
Major retailers across the U.S. are shutting down their stores or reducing hours in response to the coronavirus pandemic.
The decisions, while smart for customers, workers and the community at large, will no doubt weigh heavily on the already-stressed retail industry. One analyst has estimated this could result in a record year for permanent retail store closures, which could mount to over 15,000.
Jefferies analyst Randal Konick said he expects to see more retailers close stores, and if they don’t, they likely will see little demand as malls become ghost towns.
“With stores accounting for 75% of sales for most retailers, we anticipate massive EPS declines for 1Q, especially as most retailers appear to be paying employees during the 2 week closures,” Konick wrote in a research note.
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Meantime, retailers that sell essentials like food, medicine and cleanings supplies have seen a surge in demand. Some grocers have been forced to limit the number of certain products to prevent hoarding, and employees are working hard to keep items on the shelves.
Here are some of the announcements retailers have made so far.
Abercrombie & Fitch
From March 15 through March 28, Abercrombie & Fitch plans to close all its stores outside of the Asia-Pacific region. Online stores will continue to operate. In addition to its namesake brand, the retailer operates Hollister stores. It has more than 850 stores worldwide. The company said employees will still receive their full pay during this time.
“The decision to close all our stores outside of the APAC region has been done with a focus on the wellbeing of our associates, our customers, our partners, and our communities, and it is in keeping with our commitment to being a responsible corporate citizen,” said CEO Fran Horowitz.
But the store closures are creating much uncertainty about the retailer’s business, prompting the company to withdraw the financial outlook it issued earlier this month for both the fiscal first quarter and full year.
Source: CNBC