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When large retailers across the country began announcing temporary store closures earlier last week due to the spread of the coronavirus, it seems that many thought it would work in two weeks.
That expectation has proven to be very optimistic.
Coaches, Abercrombie & Fitch, Men’s Warehouse are one of the chains to extend Thursday closures, and in the United States and Western Europe, returning to normal has become a way off It is getting.
The coach’s parent tapestry, who also owns Kate Spade, hopes to reopen the store on April 10 instead of March 27. Jos, its parent company. Tailored Brands, also owned by A. Bank, has dispatched all store staff to date. Nordstrom will resume on April 5 one week behind schedule. Abercrombie, like Apple, initially set a specific date, but now only informs that stores will be closed.
The closure has put the retail sector in one of the biggest crises ever. Research firm GlobalData Retail is tracking the closure and estimates that by Thursday morning, 40.9% of US retail space is currently closed. The company now expects retail sales to decline 12.4% this month, 11.6% in April and 6.1% in May when the crisis begins to mitigate.
Before Easter, the date Trump stated that he wanted to “reopen” the economy, some of the expected dates of business return will come. Even April 12 seems unrealistic, as many states and cities closed to slow the spread of the virus, and its peak was not expected for weeks.
Wall Street also believes that the closure will not be immediate. In a research note titled “Closeageddon,” Jefferies analysts warned that “stores may close longer than we think.” In addition, the company warned that e-commerce would not be close to filling the shortfall. Anyway, digital sales, especially orders shipped, are much less profitable. The option of allowing shoppers to receive online orders at the store significantly reduces costs.
Even though retailers are open to business and doing well in this environment, it is clear that anxiety is growing. Despite the impressive March results so far, thanks to stock-up, Target withdrew its 2020 financial forecast this week due to economic uncertainty.
Others that sell items they don’t need are more challenging. Abercrombie, Tapestry and Nordstrom have been able to use the latest credit lines this week to access cash at once, but at a cost, but addressing a significant drop in revenue. Best Buy, Ulta Beauty and Kohl’s are one of many other chains that have taken steps to enhance access to cash in the past week.
A tougher decision is approaching. Macy’s, Gap, Under Armor, J.C. Penny, as well as developers at major malls, are among the many companies that will be reopening next week, but these dates need to be reviewed.
Other Fortune essential articles:
—Which stores are open during the coronavirus pandemic in the United States?
— “Must-have” stores like CVS continue to adopt spree during the rest of the retail reels
—How Nike Overcomes Coronavirus Impact on Chinese Business
-Uncertainty dominates, but Rowe CEO says business is stagnant
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