Coronavirus May Push Department Stores Over the Edge
Macy’s recently announced that it may have lost as much as $1.1 billion in the weeks between February and May. Kohl’s says that sales fell 43% in the last quarter. These department store retailers depend heavily on in-store sales, so when their stores were forced to close, the damage was appalling.
As the economy reels from the impact of the coronavirus, shoppers may not be too quick to flock back to reopened stores to buy discretionary products. All this spells trouble for department store retailers.
Macy’s, Kohl’s and L Brands’ results reflect how reliant traditional apparel chains are on customers coming into stores and raise doubt about their ability to survive in the long run.