Retail shrinking in the US

Pandemic or Covid19 whichever sounds less devastating to you, US is on a roller coaster of pandemic it was anticipated that worst has passed but ground stats are describing opposite. 77k confirmed positive cases have just been recorded in last 24 hours leaving state governors and business in deep trouble whether to continue unwanted and harming lock down or reopen sinking businesses. Its extremely fragile situation for administration. However various states are planning to resume back to normal by opening retail and small business back to business they realize another spike in confirmed cases which was described by Trump administration as ‘ more testing more cases’. Around the world, economies are cautiously reopening. Businesses are keeping one eye firmly on the here and now but also tentatively looking ahead to what’s shaping US brands to reset.

Retail closing outlets all across US


Sinking Retail in this pandemic

It could take more nearly half of the decade to get back to normal

As communities around the world respond to concerns over the corona virus pandemic, we know that this time presents unique challenges for retailers of all sizes and the people they assist. It’s more important than ever to be there for shoppers in the most helpful ways — whether it’s letting your customers know a product is back in stock, providing information on how you’re taking precautions to ensure safety, or sharing an update on how your business and employees are adapting. Lets have a look on major brands how they are dealing with such uncertainty? Biggest Car Rental company (Hertz) filed for bankruptcy – they also own Thrifty and Dollar

Nissan Motor Co. may close down in USA.Biggest Trucking company (Com car) filed for bankruptcy – they have 4000 trucks.Oldest retail company (JC Penny) filed for bankruptcy – to be acquired by Amazon for pennies.Biggest investor in the world (Warren Buffet) lost $50B in the last 2 months.Biggest investment company in the world (Black Rock) is signalling disaster in the world economy – they manage over $7 Trillion.Biggest mall in America (Mall of America) stopped paying mortgage payments.Most reputable airline in the world (Emirates) laying off 30% of its employees.US Treasury printing trillions to try to keep the economy on life support – their balance sheet will become $7 T+.Estimated no. of retail stores closing in 2020 – 12,000 to 15,000. The following are big retailers that have announced closing

Lets have a quick look which are the top brands who are looking forward and planning to reduce branches all across US which will ultimately leads to unemployment

— J. Crew
— Gap
— Victoria’s Secret
— Bath & Body Works
— Forever 21
— Sears
— Walgreens
— GameStop
— Pier 1 Imports
— Nordstrom
— Papyrus
— Chico’s
— Destination Maternity
— Modell’s
— A.C. Moore
— Macy’s
— Bose
— Art Van Furniture
— Olympia Sports
— K Mart
— Specialty Cafe & Bakery
and many many more…

World-renowned brands from January to May because of the impact of the epidemic:

Victoria’s Secret declared bankruptcy,
ZARA closed 1,200 stores,
La Chapelle withdraws 4391 stores,
Chanel was discontinued,
Hermes is discontinued,
Patek Philippe discontinued production,
Rolex discontinued production,

The world’s luxury industry has ceased production,Nike has a total of 23 billion US dollars, preparing for the second stage of layoffs,Needless to say about travel, The founder of Airbnb said that because of the epidemic, 12 years of efforts were destroyed in 6 weeks, Even Starbucks also announced “to permanently close 400 stores”Under the weight of the new crown epidemic, many giants are facing the crisis of failure!

Five months of the epidemic, 780 million people were in debt, and tens of thousands of companies went bankrupt, so the company was seriously replaced. Massive mortgage loan defaults, credit card defaults and auto loan defaults are expected

The real impact of Covid -19 will be known in the third quarter of 2020. Unemployment claims reached an all-time high of 38+ million – unemployment is over 25% (out of 160 million of work force, close to 40 million are jobless). With no income, consumer demand is falling drastically and the economy will go into a free fall.

This is just USA…

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