Home   Knowledge  US  Investments in US   U.S. Retail Industry Under Coronavirus 

KNOWLEDGE

SHARE

U.S. Retail Industry Under Coronavirus

【Font:L M S

U.S. Retail Industry Under Coronavirus

The coronavirus pandemic has caused turmoil throughout the retail industry. A handful of retail companies that were deemed essential from the output have seen sales increase, but many chains and franchises have been left in shambles (even with online shopping sales rising).

Over the last few weeks, several major chains have announced permanent store closings or intentions to file for bankruptcy. Here’s a look into the impact the coronavirus has had on the retail industry, which already was largely on the defense before the pandemic hit.

  1. Amazon

    Amazon has continued its online retail domination. The company reported its first-quarter sales increased by 26% compared to 2019.

  2. Gap

    Gap Inc. reported first-quarter fiscal year sales dropped by 43%, due to temporary store closures. As of June 4, 55% of the company’s U.S. stores are open.

  3. JCPenney

    JCPenney will permanently close 154 stores after filing for bankruptcy.
    Liquidation sales for the first round of store closures are expected to begin this month and take 10-to-16 weeks to complete.

  4. Macy’s

    Macy’s expects a loss of up to $1.1 billion for the period ending May 2, compared to $203 million in 2019, according to its first-quarter preliminary results.

  5. Starbucks

    Coffee giant Starbucks announced it will close up to 400 company-operated stores over the next 18 months.
    Starbucks said it expects to lose up to $3.2 billion in revenue due to the coronavirus pandemic, and the closures are to “strategically optimize our portfolio.”

  6. Victoria’s Secret

    Victoria’s Secret will permanently close about 250 stores in the U.S. and Canada this year.

  7. Walmart

    The discount retailer experienced a 10% increase in sales compared to 2019 for its first-quarter results, ending May 1.
    Walmart said its e-commerce sales increased 74% in the United States.

  8. Zara

    Inditex, the parent company of fashion brand Zara, announced this week plans to close up to 1,200 stores worldwide by the end of 2021.
    The closings will be “stores at the end of their useful life” and “whose sales can be recovered in nearby stores and online," the company said.


Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:

Email: info@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ WeChat: +852 5616 4140
Skype: kaizencpa

Language

繁體中文

简体中文

日本語

close