The "retail apocalypse" has hurt malls, but not completely killed them. 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. 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. 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. Aside from tourism and commercial real estate, it’s hard to imagine an industry that has been as devastated by COVID-19 as retail. Macy's were down despite efforts to realign expectations, demonstrating that investors remain incredibly nervous about the future for department stores. (Photo by Ron Adar/SOPA Images/LightRocket via Getty Images). All three, respected and established retailers, all three being challenged like never before during the current crisis. Johnson & Johnson vaccine might soon ease the shortage. On Tuesday, Macy’s announced would close 37 of its stores in an effort to regain profitability — … (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. Monthly Issues. The retail sector has been at the forefront of many of the changes and challenges that have arisen as a result of Covid. COVID-19 has changed how we shop. Its business is suffering as a result of the pandemic. 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. 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 … COVID-19 Meets the Retail Apocalypse. Let our global subject matter experts broaden your perspective with timely insights and opinions you In 2019 over 9,302 store closings were announced by retailers in the US, which was a massive 59% increase from 2018. 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. 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. can’t find anywhere else. 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. … The retail apocalypse refers to the growing phenomenon of the closing of multiple brick-and-mortar retail stores in the past decade. 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. Retail thought it was facing the apocalypse. The 'retail apocalypse,' explained. So many things we used to take for granted are now off-limits like going to the mall. June 24th, 2020. Here's why some malls are in danger of being closed for good. Gregg, Family Christian Stores and The Limited all going out of business entirely. The Atlanticdescribed the phenomenon as "The Great Retail Apocalypse of 2017," reporting nine retail bankruptcies and several apparel companies having th… “There are 110,000 stores in America. Essentially, we had all become "over-retailed". How Will Chinese New Year Impact The Global Supply Chain Bottleneck? To survive in the long-run, retailers are compelled to continuously rethink and restrategize their business. When the pandemic shut down the country, retailers, restaurant owners and … But it will take a good few weeks to work through at a minimum. All Rights Reserved, This is a BETA experience. How do you future-proof a career in a dying industry? and John Lewis. Beyond simply creating a crisis communications plan, retailers should be thinking about how they will manage their workforce under different scenarios. In the US, malls are empty. 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. This month, we're buying puts on a retailer that primarily operates in malls. Footfall figures have never been more eagerly awaited. New York City is the last region in the state to reopen its economy. By Dawn Geske 12/01/20 AT 8:40 AM. Retailers must have a plan that ensures the safety of the employees while also trying to maintain business as usual activities. Jerry Bergquist / Shutterstock.com . Breaking the silence around the menopause. What we are looking at is a retail revolution, not an apocalypse. Evictions, job loss, hunger: Biden inherits an economic mess . But that won't necessarily be a bad thing, will it? 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. Opinions expressed by Forbes Contributors are their own. 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 … You may opt-out by. 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. On both sides of the Atlantic, brick and mortar retail is under an existential threat, the likes of which it has never before faced. No doubt, and of course, the real barometer of consumer sentiment will be in the coming weeks, as shoppers sample the new retail experience. 31 photos . The coronavirus pandemic will cause the retail apocalypse to escalate, creating tough times for retail REITs like Choice Properties REIT (TSX:CHP.UN). Bill McGilton. Johnson & Johnson vaccine might soon ease the shortage. Too many boardrooms are climate incompetent, ‘British brands will die’: Fashion raises the alarm on Brexit trade deal, How the race for renewable energy is reshaping global politics, For 4 weeks receive unlimited Premium digital access to the FT's trusted, award-winning business news, MyFT – track the topics most important to you, FT Weekend – full access to the weekend content, Mobile & Tablet Apps – download to read on the go, Gift Article – share up to 10 articles a month with family, friends and colleagues, Delivery to your home or office Monday to Saturday, FT Weekend paper – a stimulating blend of news and lifestyle features, ePaper access – the digital replica of the printed newspaper, Integration with third party platforms and CRM systems, Usage based pricing and volume discounts for multiple users, Subscription management tools and usage reporting, Dedicated account and customer success teams. The pandemic, however, will. But this is a very complex scenario. 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. By Laurence Darmiento, Los Angeles Times. Macy's chief executive, Jeff Gennette said that sales at reopened stores are down around 50%, much better than the 85% which was anticipated. 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. JWN Should Covid vaccines be mandatory at work? The retail apocalypse really doesn't respect reputations, and it takes no prisoners, just ask the likes of Macy's 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. 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