The world has noticed the impact of the Coronavirus and we also know that all the retail stores around the world are closed due to this reason. It is also seen that stores around the world are putting a “temporarily closed” banner in front of their physical space. However, it is seen that many of them are succumbing to the pressure of Coronavirus because they have to pay the rents while the sales are zero during this period. Now, a new report has emerged during this pandemic which could be seriously bad for the industry.
According to the report, it is said that the stores that have been closed on “temporary” basis right now might even be closed on “permanent” basis and this is because of their financial condition. Nordstrom is one big retail player and they announced back when the lockdown started that all their stores in the US, Canada and Puerto Rico will be closed to stop the spread of the virus. Now, a new comment from them reveals that 14% of their stores which are sixteen of these shops will never open for the public which means that they are permanently closed. In other words, this is a measure from Nordstrom to cut costs wherever necessary and it is more than likely the stores that have been closed were either making marginal profits or even none at all.
Nordstrom is believed to be a healthier business in the industry and one expert says that “If they’re taking that sort of reflective look at their physical footprint, I suspect others will as well.” This means that other businesses that were not very healthy even before the pandemic will have to close fully or 50% of its operations after the pandemic. Another expert predicted that “20% of brick-and-mortar stores in places such as North America and Western Europe could close due to the pandemic”.