Yahoo Finance Tuesday's Market Minute: Covid-19 Fuels Demise Of The U.S. Mall
While the indices’ rally took center stage on Monday, one sector made a quiet yet vigorous comeback: Retail. PVH Corp. (NYSE: PVH), Capri Holdings Limited. (NYSE: CPRI), Nordstrom, Inc. (NYSE: JWN), Kohl’s Corporation (NYSE: KSS), and Ulta Beauty, Inc. (NASDAQ: ULTA) all closed over 20% higher on the day, contributing to the S&P 500’s 7%-plus gain. But Monday’s move didn’t erase the difficult times facing retailers. Malls in several cities have shut their doors, while local and state governments required retailers to close in an effort to slow the Covid-19 pandemic.
Macy’s, Inc. (NYSE: M) announced on Mar. 30 all stores will remain closed until there is a “clear line of sight on when it is safe to reopen,” and that “the majority” of employees will be furloughed. Capri closed all directly operated stores in North America until June. Other retailers who have temporarily closed include: Bed Bath & Beyond, Inc. (NASDAQ: BBBY), Lululemon Athletica, Inc. (NASDAQ: LULU), Dick’s Sporting Goods, Inc. (NYSE: DKS), H&M, Ross Stores, Inc. (NASDAQ: RST), Foot Locker, Inc. (NYSE: FL), Shoe Carnival, Inc. (NASDAQ: SCVL), The TJX Companies, Inc. (NYSE: TJX), Abercrombie & Fitch Co. (NYSE: ANF), American Eagle, Adidas AG (OTCMKTS:ADDYY), Lands’ End, Inc. (NASDAQ: LE) and Ralph Lauren Corporation (NYSE: RL).
But data from predictive retail analytics firm Quantum Metric found consumers shifted to digital platforms. According to the study, U.S. retailers with both brick-and-mortar and e-commerce channels experienced 52% revenue growth rate online between the fifth and eighth weeks of 2020. While an online shopping surge may provide a safety net for some retailers, it may not be enough for the already-sinking U.S. mall.
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