The Atlanticdescribed the phenomenon as "The Great Retail Apocalypse of 2017," reporting nine retail bankruptcies and several apparel companies having th… COVID-19 Meets the Retail Apocalypse. Investors should be prepared for more sweeping store closure announcements — known affectionately in retail analytical circles as the “retail apocalypse” — after what is shaping up to be a lackluster holiday shopping season thanks to the COVID-19 pandemic. Retail thought it was facing the apocalypse. The coronavirus pandemic will cause the retail apocalypse to escalate, creating tough times for retail REITs like Choice Properties REIT (TSX:CHP.UN). “There are 110,000 stores in America. June 24th, 2020. The pandemic, however, will. But this is a very complex scenario. Gregg, Family Christian Stores and The Limited all going out of business entirely. Then came the coronavirus. In the US, malls are empty. Its business is suffering as a result of the pandemic. This month, we're buying puts on a retailer that primarily operates in malls. and John Lewis. Consumers sidelined by Covid and retailers shut by … Microsoft plans to close all of its retail stores, a plan that "was originally in place for next year, but was accelerated by the COVID-19 pandemic," according to The Verge. So many things we used to take for granted are now off-limits like going to the mall. Should Covid vaccines be mandatory at work? As the pandemic wages on, the retail industry is … The retail sector has been at the forefront of many of the changes and challenges that have arisen as a result of Covid. But that won't necessarily be a bad thing, will it? Footfall figures have never been more eagerly awaited. © 2021 Forbes Media LLC. The term "retail apocalypse" began gaining widespread usage in 2017 following multiple announcements from many major retailers of plans to either discontinue or greatly scale back a retail presence, including companies such as H.H. We really shouldn't be surprised by any of this, after all, it's not as if this has suddenly crept up on us, it's been a trend for years. Advertiser Disclosure . Prior to founding Retail Reflections, during my 20-year retail career, I held senior positions at Kingfisher and Superdrug and have worked with many of the UK's leading retailers. I've been named a top retail influencer by several publications and my observations on the High Street and many aspects of retail regularly appear in the press. Aside from tourism and commercial real estate, it’s hard to imagine an industry that has been as devastated by COVID-19 as retail. Retail thought it was facing the apocalypse. Coresight Research, which tracks retail store openings and closings, projects that a record 25,000 stores will close in 2020 — up from its pre-pandemic estimate of 8,000. … Commentary: How to sell clothes during a retail apocalypse Brand survival in the pandemic is part luck, but there are some lessons to be learnt, says the Financial Times’ Rana Foroohar. Covid-19 and The Retail Apocalypse. In the US, malls are empty. By Dawn Geske 12/01/20 AT 8:40 AM. By John Csiszar January 8, 2021 Start a Business View Gallery. On Tuesday, Macy’s announced would close 37 of its stores in an effort to regain profitability — … But there's a reason why we cull and why we prune, retail will no doubt look and feel very different once we emerge on the other side of this pandemic and many well known names will have disappeared or shrunk to a shadow of their former selves. New York City is the last region in the state to reopen its economy. Disney's entry into experiential hotel will see guests fully immersed into believing they are on a starship in the Star Wars universe, with live action role playing being employed by cast members and digital screens acting as windows on the space battles. Beyond simply creating a crisis communications plan, retailers should be thinking about how they will manage their workforce under different scenarios. The retail apocalypse refers to the growing phenomenon of the closing of multiple brick-and-mortar retail stores in the past decade. The subsector was the worst performer among all REITs in 2019, with that underperformance carrying over into 2020 as COVID-19 accelerated the retail apocalypse. It is a well established fact that both the U.K. and U.S. retail sectors have been overspaced for far too long and let's not forget that the reality was hitting long before the coronavirus pandemic hit. After being locked inside for months, it is perhaps to be expected that shoppers will initially return to stores, keen to grab not just a bargain but reacquaint themselves with the store experience. With big name retailers like David Jones and Target closing stores in the wake of the COVID-19 pandemic, what experts are calling the “Retail Apocalypse” has been accelerating. More Coronavirus Retail Casualties: ‘Half’ Of America’s Malls Could Close In Retail Apocalypse . 2020 marked a retail apocalypse with many major retailers across the country forced to close their doors amid economic pain spurred on by the pandemic and a changing retail … Macy's chief executive, Jeff Gennette said that sales at reopened stores are down around 50%, much better than the 85% which was anticipated. You may opt-out by. I write about consumer and tech trends & the challenges in retail, Square on first day of city reopening New York City enters "Phase 1" of a four-part reopening plan after spending more than two months under lockdown. When the pandemic shut down the country, retailers, restaurant owners and … , Nordstrom Macy's were down despite efforts to realign expectations, demonstrating that investors remain incredibly nervous about the future for department stores. An exercise in trying to protect the share price? Johnson & Johnson vaccine might soon ease the shortage. How Will Chinese New Year Impact The Global Supply Chain Bottleneck? On both sides of the Atlantic, brick and mortar retail is under an existential threat, the likes of which it has never before faced. It disrupted brick-and-mortar long ago, hastening the retail apocalypse, but went through the roof this past year. COVID-19 is having many far-reaching implications and one of them is on under-performing retail. Last month Nordstrom announced that it is to permanently close nearly 15% of its full line stores across the U.S. And here in the U.K. with all non-essential retail allowed to reopen from Monday June 15, John Lewis has reported that it is considering not reopening a number of its less profitable stores next week as part of a strategic review of the business. To survive in the long-run, retailers are compelled to continuously rethink and restrategize their business. COVID-19 is putting the future of malls in jeopardy with JCPenney, Victoria's Secret and others planning to close stores or filing for bankruptcy. The evolving expectations of consumers, spurred on by competition from online retailers, will propel retail transformation. The 'retail apocalypse,' explained. And from next week we will begin to see if that trend is replicated on this side of the Atlantic. Opinions expressed by Forbes Contributors are their own. Let our global subject matter experts broaden your perspective with timely insights and opinions you NEW YORK, UNITED STATES - 2020/06/08: People walk by a boarded up Macy's flagship store in Herald ... [+] Square on first day of city reopening New York City enters "Phase 1" of a four-part reopening plan after spending more than two months under lockdown. Commentary COVID-19 notwithstanding, OOH entertainment pushes hard into retail and hospitality. COVID-19 has changed how we shop. M The coronavirus pandemic will change the nature of retailing and workplaces, with unpleasant implications for landlords and property investors. Jerry Bergquist / Shutterstock.com . COVID-19 is having many far-reaching implications and one of them is on under-performing retail. Bill McGilton. I am a retail analyst, writer, and keynote speaker on retail challenges and trends with a focus on consumer behavior, customer experience, and technology disruption. The COVID-19 pandemic has taken a sharp economic toll on the retail industry worldwide as many retailers and shopping centers were forced to shut down for months due to mandated stay-at-home orders.As a result of these closures, online retailers received a major boost in sales as customers looked for alternative ways to shop and the effects of the retail apocalypse … I am a retail analyst, writer, and keynote speaker on retail challenges and trends with a focus on consumer behavior, customer experience, and technology disruption. can’t find anywhere else. Breaking the silence around the menopause. All three, respected and established retailers, all three being challenged like never before during the current crisis. After our updates & shout outs, we discuss the effects of the Corona Virus Shut down on the retail industry which was already on shaky ground. Here's why some malls are in danger of being closed for good. Johnson & Johnson vaccine might soon ease the shortage. Essentially, we had all become "over-retailed". Then came the coronavirus Doy Estacio walks past a closed Sephora store on Colorado Boulevard … Just how many will embrace it and how many will dip a toe in the water, only to then retreat back to the relative safety of online, remains to be seen. Three years ago (2017), long before COVID-19 wreaked havoc globally, the bricks-and-mortar businesses in the USA were either downsizing or closing. Evictions, job loss, hunger: Biden inherits an economic mess . All Rights Reserved, This is a BETA experience. The "retail apocalypse" has hurt malls, but not completely killed them. 'EMPTY STOREFRONTS': COVID fuels 'retail apocalypse' Back to video Then COVID-19 came along. No doubt, and of course, the real barometer of consumer sentiment will be in the coming weeks, as shoppers sample the new retail experience. Retailers must have a plan that ensures the safety of the employees while also trying to maintain business as usual activities. JWN Coronavirus effect: Bankruptcies won't save retail this time Published Sat, Apr 4 2020 12:16 PM EDT Updated Sun, Apr 5 2020 2:10 PM EDT Lauren Hirsch @laurenshirsch 31 photos . The retail apocalypse really doesn't respect reputations, and it takes no prisoners, just ask the likes of Macy's New York City is the last region in the state to reopen its economy. (Photo by Ron Adar/SOPA Images/LightRocket via Getty Images), Impact 50: Investors Seeking Profit — And Pushing For Change, Skincare Demand In Asia Drives Estée Lauder Back To Growth, Parkland Survivor David Hogg Is Taking On MyPillow, Amazon’s Third-Party Marketplace Is Its Cash Cow, Not AWS, Kohl’s Preliminary Year-End Results Are Encouraging, Retail Tourism Unlikely To Return In 2021; Cross-Border Ecommerce Filling The Void, As Valentine’s Day Nears, Forevermark’s President Charles Stanley Distills Diamond Endurance. It is evident that the coronavirus crisis has created a complex scenario for the retail sector. COVID-19 is taking no prisoners. What we are looking at is a retail revolution, not an apocalypse. Whilst it’s too early to say coronavirus could sadly end up being the pinnacle of the retail apocalypse that has been predicted in recent years, personally I … Last week, in common with other retailers whose share price was depressed, Macy's and Nordstrom closed down 15% and 12.2% respectively on the New York stock exchange. And of course, the traditional shopping mall model means that these names are associated with being anchor tenants, and some of the closures which have been announced are in exactly that location, dealing a further blow to struggling malls and shopping centers. Macy’s to Close 37 Stores as the Retail Apocalypse Continues in 2021 COVID-19 is taking no prisoners. They called it retail apocalypse. Monthly Issues. 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In 2019 over 9,302 store closings were announced by retailers in the US, which was a massive 59% increase from 2018. As operator of one of the count By Laurence Darmiento, Los Angeles Times. How do you future-proof a career in a dying industry? 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Aside from tourism and commercial real estate, it’s hard to imagine an industry that has been as devastated by Covid-19 as retail. The COVID-19 virus has already led to a number of workplace shut-downs and quarantines. The 'retail apocalypse,' explained. (Photo by Ron Adar/SOPA Images/LightRocket via Getty Images). Evictions, job loss, hunger: Biden inherits an economic mess . It's just that what is happening now is in a different league. Tribune Content Agency | Apr 07, 2020 at 3:34 PM . Amazon last month said nearly 20,000 people, or 1.4% of its staff, at Amazon and Whole Foods, the grocery store it owns, had tested positive for Covid … But it will take a good few weeks to work through at a minimum. Survival Of JCPenney’s Heritage Is In Question, Hey Beauty, It’s Time To Lift The Lid On Ingredients And Impact, announced that it is to permanently close. 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