Impact of the COVID-19 pandemic on retail

Africa

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.
• Due to COVID-19, sales of tobacco and alcohol were prohibited under lockdown restrictions.
• 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.

  Americas

Canada

• During the month of April, retail sales in Canada dropped 26.4% in a record decline for the second month in a row.
• On July 31, Chico's Canadian subsidary filed for bankruptcy.

  United States

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.
• U.S. based Apple Inc. announced it would temporarily close all stores globally outside of China on March 14. On the same day, Urban Outfitters, Verizon, and T-Mobile all announced their intentions to temporarily close stores as well.
• 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.
• Westfield Group announced all 32 of their shopping mall properties would be temporarily closing on March 19 except for essential stores.
• CEO of Kroger, Rodney McMullen, announced that due to increased coronavirus demand, 10,000 job openings were available across their stores.
• 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. 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. In June, contractors for the mall claimed they were owed $13 million for unpaid work.
• 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.
• 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.
• On March 31, Walmart announced it would supply its employees with masks and gloves and take employees temperatures before shifts.
• Simon Property Group, the largest shopping mall operator in the United States, furloughed 30% of its staff on March 31.

  April 2020

• 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.
• Bloomberg News reported that nearly 1 million retail workers were furloughed by April 2.
• Macy's, Inc. was dropped from the S&P 500 on April 2.

  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.
• J.Crew was the first national retailer to file for bankruptcy on May 4, 2020.
• 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.
• On May 5, Nordstrom announced its intentions to close 16 locations. The company announced sales were down 40% due to the pandemic on May 28.
• 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."
• 118 year old department store chain J. C. Penney filed for Chapter 11 bankruptcy protection on May 15 as the pandemic battered the already struggling retailer.

  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. On July 17, Bloomberg News reported that CBL was preparing to file for bankruptcy.
• 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.
• 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.
• 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.
• Health retailer GNC announced the closure of "at least 800 to 1,200 stores" after filing for Chapter 11 bankruptcy on June 23.
• The United States Department of Commerce reported that retail sales had increased by 7.5% in June as lockdown restrictions were further eased.
• Old Time Pottery filed for Chapter 11 bankruptcy on June 30.

  July 2020

• Bloomberg News reported on July 7 that Ascena Retail Group, parent company of Ann Taylor Loft, Justice, and Lane Bryant, would file for bankruptcy. On July 23, the company filed for Chapter 11 bankruptcy and announced it plans to close stores, with a "significant" number of closures for the Justice stores.
• The nation's oldest men's retailer Brooks Brothers filed for bankruptcy on July 8 after years of faltering sales from a shift to more casual workplace attire that was exacerbated by the pandemic. On July 23, Simon Property Group and Authentic Brands made a bid of $3.5 million to try and keep 125 stores open.
• RTW Retailwinds, parent company of New York & Company filed for bankruptcy on July 13 with plans to close "most, if not all stores".
• On July 14, PVH Corp, parent of brands such as Tommy Hilfiger, Calvin Klein, and Izod, announced it will close all 162 of its Heritage Retail outlet stores and lay off about 450 employees.
• Multiple retailers including Best Buy, Walmart, Target, Kroger, CVS Pharmacy, and Walgreens announced they would require customers to wear face masks to shop at their stores.
• The National Retail Federation reported that back to school shopping sales could hit record highs as parents and students buy more laptops and technology to prepare for more distance learning.
• 21 CEOs of retail businesses penned an open letter on CNN.com to governors across the country on July 17, pleading for mandatory mask requirements in retail establishments. Amongst the 21 CEOs included are Mary Dillon, CEO of Ulta Beauty, Sonia Syngal, CEO of Gap Inc., Jill Soltau, CEO of J. C. Penney, and Bill Rhodes, CEO of AutoZone.
• Walmart and Sam's Club announced their stores would not be open on Thanksgiving Day in 2020, suspending its early Black Friday hours to give their employees more time to spend with their families during the pandemic. Several other retailers also announced they will be closed on Thanksgiving Day in 2020 including Academy Sports + Outdoors, Best Buy, Costco, Dick's Sporting Goods, Hobby Lobby, The Home Depot, Kohl's, and Target.

  Asia

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.
• 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.

  Europe

United Kingdom

• On March 13, British job recruiters predicted the retail and hospitality industries would be hit hardest by the pandemic.
• Fashion house Burberry announced it would cut 500 jobs globally after sales declined 45% during the first quarter.