Virus Response Shutters 55% of U.S. Retail Space
Large-scale furloughs underscore the challenges in the industry as chains like T.J. Maxx temporarily close their doors.
April 10, 2020 | Greg Isaacson | Commercial Property Executive
The coronavirus response has snared American retailers in an unprecedented crisis, with more than three-fifths of the nation’s stores now sitting dark amid mandatory business closures and stay-at-home orders. Nearly 4.8 billion square feet of retail floorspace has closed across the U.S., or 54.8 percent of the total, according to the latest figures from industry intelligence provider GlobalData.
That represents more than 258,366 store units that have shuttered, or 60.8 percent of the total—not including food service or service operators like gyms or spas. But there are winners and losers in the new environment. Needs-based retailers are ramping up hiring to the tune of hundreds of thousands of staff, while apparel chains and restaurants have been hardest hit by the economic freeze.
“The ones that are able to remain open, the essential businesses—groceries in particular—are benefiting the most, and the ones that were struggling prior to closures are going to be suffering the most,” said Zachary Klein, associate director at Fitch Ratings covering the real estate and leisure sector.
