Permanent closure of 15,000 retail stores expected in the USA

Among the main topics of US news channels and television shows is the CPG sector, the food industry and the grocery retail. NBC Nightly News Broadcast also showcased the self-sacrifice of food industry workers to provide supplies to U.S. residents. At the same time, Broadcast highlighted that in many meat and poultry processing plants, distance is ignored and employees work in bulk. Trade unions also demand a healthy working environment that complies with epidemic standards, as this is in the interests of both workers and consumers. Plant owners promise immediate action.

U.S. trade is transformingEconomic analysts predict retail bankruptcies among North American traders. The most vulnerable are who sell non-essential items.”You’re going to see survival of the fittest play out where the weaker die off quicker,” says David Berliner, head of BDO’s restructuring departmen in an interview in Retail Dive. The epidemic is referred to as an economic cataclysm and based on Coresight Research report the permanent closure of about 15,000 retail stores is predicted for the summer and fall. Distribution prestige will no longer be enough argument to keep a store open, numbers, profitability will decide the future of stores. “Stay at home” measures strengthen large well-capitalized retailers like Walmart, Cosco and Target. They switched sooner and previously redesigned their strategy to provide a convenient online shopping experience and a range of related services. From one-day delivery to store pickup and driveup and user-friendly webshops, they have turned to digital shoppers on a wide scale, which now increases their chances of survival.

Analysts, consultants and other observers over the past several harrowing weeks have noted that the pandemic is accelerating trends that were already roiling segments of retail, even while the economy overall was strong.

“Retailers are going to take a deep breath and really start reevaluating how many stores they need and which locations are more important to them. I think there are going to be a lot of retail bankruptcies.” says Seth Freeman, a senior managing director with B. Riley Financial’s GlassRatner​, told Retail Dive in an interview.  Closed departmentsA number of orders were issued in the stores of the US. The order limits the number of customers allowed in large stores to four people per 1,000 square feet, so long lines meander in front of big-box stores. Bulk dispensers have been closed earlier. As of April 13, several states (Michigan, Vermont, Indiana) are forcing large stores such as Walmart, Costco, and Target to close areas dedicated to clothing,  electronics, carpeting, flooring, furniture, garden centers, plant nurseries, and paint. The order suggests that stores close these sections by placing signs in aisles, posting prominent signs, removing goods from shelves or using other means. Online access and ordering for these goods is recommended. These stores must also stop the advertising or promotion of “nonessential” goods. Michigan is further requiring all stores to dedicate at least two hours per week of shopping time for vulnerable populations, which includes people over 60 years old, pregnant women, and those with chronic conditions like heart disease, diabetes, and lung disease. Supply chain heroesAmerica’s heroes are now health workers as well as food industry, commerce and logistics workers. NBC Nightly News Broadcast also personally introduced one of them. It is also thanks to truck driver James Rogers that the economy is rolling and shipments are reaching their destination even during the epidemic. The Afghanistan veteran sees driving the truck as another patriotic service. He drove more than 13,000 miles in 48 hours, with most rest areas closed. He doesn’t go home, he doesn’t want to endanger his family, so the truck is his apartment too.“If nation calls I’m going. You too hold on and continue the fight” says his encouraging, personal message.