Impact of the COVID-19 pandemic on retail

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 were exacerbated.[1] A number of notable retailers filed for bankruptcy including Ascena Retail Group, Brooks Brothers, GNC, J. C. Penney, Lord & Taylor and Neiman Marcus.

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COVID-19 pandemic
 COVID-19 Portal

Africa

South Africa
Main article: COVID-19 pandemic in South Africa
  • Online retailer Amazon announced it would be adding 3,000 customer service jobs in South Africa to respond to increased demand in North America and Europe for Amazon products.[2]
  • Due to COVID-19, sales of tobacco and alcohol were prohibited under lockdown restrictions.[3]
  • Edcon put their retail brands Edgars, Jet, and Thank U up for auction and ceased to pay rents for its retail locations following lockdown restrictions as a result of limited sales due to lockdown restrictions.[4]
  • On August 3, South African based supermarket Shoprite announced it would be selling "all or a majority stake" of its Nigerian operations amidst a struggling economy.[5]

Americas

Canada
Main article: COVID-19 pandemic in Canada
A social distancing sign in an Atlantic Superstore in Nova Scotia, Canada.
  • During the month of April, retail sales in Canada dropped 26.4% in a record decline for the second month in a row.[6]
  • On July 31, Chico's Canadian subsidary filed for bankruptcy.[7]
  • In July, DavidsTea announced it would close multiple stores amid the impact of the pandemic.[8]

United States
Main article: COVID-19 pandemic in the United States
See also: Retail apocalypse § COVID-19 pandemic

The United States has had multiple closures attributed to the pandemic and the ensuing recession. As of August 3, 43 retailers based in the U.S. have filed for bankruptcy according to CNBC[9].

March 2020
Bare shelves due to panic buying at the Giant supermarket in Franklin Farm, Virginia in March 2020
  • In the weeks leading up to lockdowns, panic buying of products such as hand sanitizer, toilet paper, and canned foods led to shortages of these items nationwide.[10] [11]
  • U.S. based Apple Inc. announced it would temporarily close all stores globally outside of China on March 14.[12] On the same day, Urban Outfitters, Verizon, and T-Mobile all announced their intentions to temporarily close stores as well.[13]
  • The nation's largest retailer, Walmart significantly reduced its hours across the nation. Known for its 24-hour store operations, the company initially announced the stores would be open from 6am to 11pm on March 14. However, on March 19, Walmart announced stores would be open from 7am to 8:30pm until further notice to allow employees time to clean and stock products.[14][15]
  • Westfield Group announced all 32 of their shopping mall properties would be temporarily closing on March 19 except for essential stores.[16]
  • CEO of Kroger, Rodney McMullen, announced that due to increased coronavirus demand, 10,000 job openings were available across their stores.[17]
  • The retail and entertainment complex American Dream faced a series of setbacks due to the pandemic. Initially scheduled for March 19, the grand opening of the complex was indefinitely delayed.[18] Retailer GNC pulled out of the project following the pandemic, with other retailers like The Children's Place, Forever 21, and Victoria's Secret possibly withdrawing their plans as well.[19] In June, contractors for the mall claimed they were owed $13 million for unpaid work.[20]
  • GameStop received criticism for saying it was "an essential business" in states where only essential retailers were to stay open. On March 22, Gamestop closed its stores after outcry from employees.[21]
  • In March, Hobby Lobby left stores open even as many nonessential retailers shut down. The founder reportedly told his employees he had received a message from God that informed his decision to keep stores open.[22]
  • On March 31, Walmart announced it would supply its employees with masks and gloves and take employees temperatures before shifts.[23]
  • Simon Property Group, the largest shopping mall operator in the United States, furloughed 30% of its staff on March 31.[24]

April 2020
A closed dining area in March 2020 at the Concord Mall in Wilmington, Delaware during the COVID-19 pandemic.
  • Shortly following Walmart's announcement for employees, on April 2, Lowe's and Target announced they would also be providing masks and gloves for their employees.[25]
  • Bloomberg News reported that nearly 1 million retail workers were furloughed by April 2.[26]
  • Macy's, Inc. was dropped from the S&P 500 on April 2.[27]
  • Retail sales fell 16.4% in a record drop during the month of April.[28]

May 2020
  • Following the lifting of some lockdown restrictions in May, retail sales rose by 17.7% in the biggest month to month rise in sales on record.[29]
  • J.Crew was the first national retailer to file for Chapter 11 bankruptcy during the pandemic on May 4, 2020.[30]
  • After 60 years in business, Northgate Mall in Durham, North Carolina closed on May 4, the first shopping mall in the United States to directly attribute the pandemic as the reason for the closure. [31][32]
  • On May 5, Nordstrom announced its intentions to close 16 locations.[33] The company announced sales were down 40% due to the pandemic on May 28.[34]
  • On May 7, luxury department store chain Neiman Marcus filed for Chapter 11 bankruptcy. CEO Geoffroy van Raemdonck insisted that the stores would not be liquidating but that the filing was made to "alleviate debt, access additional capital to run the business during these challenging times, and emerge a stronger company with the ability to better serve you and continue our transformation over the long term."[35]
  • 118 year old department store chain J. C. Penney filed for Chapter 11 bankruptcy on May 15 as the pandemic battered the already struggling retailer.[36][37]

June 2020
  • CNBC reported on June 5 that CBL Properties, owner of over 100 mall properties located primarily in the Southeast, was in doubt that it could continue operation as a going concern, after their retail tenants missed payments which caused the business to miss their payments as well.[38] On July 17, Bloomberg News reported that CBL was preparing to file for bankruptcy.[39]
  • On June 9, 2020, retail research firm Coresight estimated the number of store closures in the United States could reach 25,000 due to the pandemic and the resulting recession, greatly surpassing the previous year's record high of 9,302.[40][41]
  • As of June 16, Mall of America owner Triple Five Group was reported to have missed three consecutive payments on a $1.4 million debt mortgage for the property.[42]
  • Two shopping malls closed on June 30, Metrocenter in Phoenix, Arizona, and the Cascade Mall in Burlington, Washington. Both directly cited the pandemic as a contributing factor in the closure.[43][44]
  • Health retailer GNC announced the closure of "at least 800 to 1,200 stores" after filing for Chapter 11 bankruptcy on June 23.[45]
  • The United States Department of Commerce reported that retail sales had increased by 7.5% in June as lockdown restrictions were further eased.[46]
  • Old Time Pottery filed for Chapter 11 bankruptcy on June 30.[47]

July 2020
Pandemic related signs for businesses on sale at a Staples
Floor decals and signs promoting one-way traffic and social distancing at the King of Prussia mall in King of Prussia, Pennsylvania

August 2020
  • The nation's oldest department store chain, Lord & Taylor, filed for Chapter 11 bankruptcy on August 2, 2020.[59] Later that same evening, Tailored Brands, parent of Men's Wearhouse and JoS. A. Bank also filed for bankruptcy.[60]
  • Many back to school sales were delayed or experienced lesser sales than previous years as uncertainty after changes in the school year led to increased unease over buying unneeded supplies.[61][62]
  • Stein Mart filed for bankruptcy on August 12, and expects to close all of their stores.[63]

Asia

China
Main article: COVID-19 pandemic in mainland China
  • On March 16, it was reported that retail sales dropped 20.5% after the pandemic hit the country, a percentage that, according to Business Insider, was unseen since the financial crisis of 2007–2008.[64]
  • Retail sales continued to decrease with a 2.8% decline in May and 1.8% in June from where they were at the same time in 2019.[65]

Europe

United Kingdom
Main article: COVID-19 pandemic in the United Kingdom

February 2020
  • In the weeks leading up to lockdowns, panic buying of products such as hand sanitizer, toilet paper, and canned foods led to shortages of these items nationwide.
  • With many people seeing disinfectant as providing protection against the spread of the disease, sales in cleaning products such as Dettol began to surge [66]
  • By the end of February London's FTSE 100 share index has seen one of its worst weeks since the depths of the financial crisis in 2008, as over £200bn is wipped off UK firms' value. [67]
  • A small number of retailers suggested that online orders shipped from China were reduced because of the impact of COVID-19.

March 2020
  • In March, the monthly retail sales volume fell sharply by 5.1%, as many stores ceased trading from 23rd March following official government guidance during the pandemic.[68]
  • Tesco and other retailers start to limit the sale of essential items.[69]
  • Retailers say say online and click-and-collect services are at "full capacity".[70]
  • On March 13, British job recruiters predicted the retail and hospitality industries would be hit hardest by the pandemic.[71]
  • The collapse of Laura Ashley made it the first casualty of the pandemic with a loss of 2,700 jobs.[72]
  • Fashion house Burberry announced it would cut 500 jobs globally after sales declined 45% during the first quarter.[73]
  • On March 30th Carluccio's and BrightHouse collapse into administration[74]
  • On March 31st Aldi, Morrisons, Waitrose and Asda started to ease restrictions on some of their products which were imposed in the wake of stockpiling earlier in the month.[75]

April 2020
  • The volume of retail sales fell by a record 18.1%, following the strong monthly fall of 5.2% in March 2020[76]
  • The proportion spent online soared to the highest on record in April 2020 at 30.7%, which compares with the 19.1% reported in April 2019[76]
  • All 60 Cath Kidston stores to close after collapse.[77]
  • On 30th April Oasis and Warehouse permanently close all their stores and online shopping with the loss of more than 1,800 jobs[78]
  • Sharon White, John Lewis boss, hints that some of their shops may not re-open after the pandemic[79]
  • Debenhams files for administration [80]

May 2020
  • Retail sales volumes started to rebound with an increase of 12.0% when compared with the falls experienced in the previous month, but sales were still down by 13.1% on February before the impact of the pandemic.[81]
  • Debenhams cuts more than 1000 head office jobs [82]
  • Shop closures due to coronavirus lockdown push British Land to £1.1bn annual loss [83]

June 2020
The volume of total retail sales recovers to similar levels as before the coronavirus pandemic
  • Monsoon close 35 stores putting 545 jobs at risk of redundancy.[84]
  • On June 26th Shopping centre owner Intu collapses into administration [85]

July 2020
  • On 1st July TM Lewin announce they will close all of their stores, with 600 workers losing their jobs.[86]
  • On 19th July Ted Baker announced they will cut 500 jobs [87]
  • On 20th July Marks & Spencer announced they were to cut 950 jobs [88]
  • On July 24th the ONS showed retail sales had returned to pre-pandemic levels[89]
  • John Lewis & Partners announce 8 stores will not reopen after the lockdown [90]
  • Boots consults on plans to cut head office and store teams and shut 48 of its Boots Opticians practices. In total over 4000 job losses. [90]
  • The British Retail Consortium announce that sales increased by 3.2% in July, against an increase of 0.5% in July 2019, however most of this was online sales plus 2020 having an extra week in January on the ONS Calendar. [91]

August 2020
  • DW Sports, enters administration, putting 1,700 jobs at risk. [92]
  • Pizza Express considers closing 67 of its UK restaurants, which would mean the loss of 1,100 jobs. [93]
  • Dixons cut 800 store management jobs [94]
  • Hays Travel, the UK’s largest independent travel agent at the time, cuts up to 878 jobs after the government’s move to quarantine arrivals from Spain. [95]
  • On 5th August WHSmith announce they may cut 1,500 jobs after sales plummet [96]
  • On 5th August nearly 400 jobs go at M&Co. as they are put into administration[97]
  • On 11th August the British Retail Consortium repeated a call for a government grant to help pay rents, saying retailers were "struggling".[98]
  • On 11th August Debenhams announced they will cut 2,500 more jobs [99]
  • The ONS shows that more than 730,000 jobs have been lost in the UK since the beginning of March [100]
  • NatWest Group plans to cut 550 jobs in branches across the UK and close one of its remaining offices in London. [101]

Hazard controls
Further information: Workplace hazard controls for COVID-19

The U.S. Centers for Disease Control and Prevention has issued guidance for businesses and employers on COVID-19 prevention and management measures in the workplace.[102] Engineering controls such as altered workspaces to allow physical distancing, plexiglass barriers, and improved ventilation are recommended. Administration controls such as training, symptom screening, routine cleaning, avoiding shared equipment and office space, staggered shifts, and flexible sick leave policies are strategies to keep employees safe and healthy. Personal protective equipment such as face coverings or gloves may be necessary depending on the job tasks.

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