Major Retailers and Mall Owners Temporarily Close Doors Amid Pandemic
Major U.S. retailers and mall operators are temporarily shutting down physical locations to slow the spread of the coronavirus, shifting focus to online sales. Analysts warn the move adds heavy pressure to an already stressed industry, potentially leading to a record number of permanent closures.
Major retailers across the U.S., including Macy's, Apple, and Nike, are temporarily shutting down their physical stores or reducing operating hours to help slow the coronavirus outbreak. The largest U.S. mall owner, Simon Property Group, is also closing all of its domestic malls and outlet centers, with other real estate operators like Unibail-Rodamco-Westfield and Taubman Centers following suit. Company leaders state that these broad-sweeping decisions prioritize the health and safety of shoppers, employees, and the broader community.
While these closures benefit public health, they add immense pressure to an already stressed retail industry. Analysts estimate that the financial strain of the pandemic could lead to a record year for permanent retail store closures, potentially exceeding 15,000 locations. Meanwhile, retailers that sell essential goods like Walmart and Costco are experiencing a massive surge in demand, forcing them to adjust their hours to allow for shelf stocking and store cleaning.
Despite the mass closure of physical storefronts, many retailers are keeping their e-commerce websites fully operational to serve consumers who are staying at home. However, it remains unclear how much demand exists for non-essential items like apparel and home goods during this crisis. Some companies, such as Abercrombie & Fitch, are continuing to pay their employees fully during the shutdown period to soften the economic blow.