fxsoriginal

As stores shutter and business grinds to a halt, what are the store owners supposed to do?

Bloomberg reports 47,000 U.S. Stores Closed in About a Week Over Coronavirus.

In a little over a week, American retail ground to a near-total halt.

More than 47,000 chain stores across the U.S. temporarily shut their doors in 10 days as retailers took extreme measures to help slow the spread of the coronavirus pandemic that has rattled all sectors of the global economy, according to data compiled by Bloomberg. At least 90 nationwide retailers, ranging from Macy’s Inc. to GameStop Corp. to Michael Kors have temporarily gone dark.

Most have pledged to remain closed to the public for at least two weeks, but they may stay closed for much longer. In the same period, small retail businesses throughout the U.S. also hit pause on their physical locations but are not included in this list.

Timeline of Closures

The bulk of those stores expect to open by the end of the month.

Will they?

Even if they do, when will shoppers return?

How many hours will be cut?

Meanwhile ...

U.S. Retailers Plan to Stop Paying Rent to Offset Virus

Please note U.S. Retailers Plan to Stop Paying Rent to Offset Virus

Major U.S. retail and restaurant chains, including Mattress Firm and Subway, are telling landlords they will withhold or slash rent in the coming months after closing stores to slow the coronavirus, according to people familiar with the situation.

In a brewing fight, chains are calling for rent reductions through lease amendments and other measures starting in April, said the people, who asked not to be named because the discussions are private.

Mattress Firm, with about 2,400 stores, sent landlords a letter last week saying it would cut rent in exchange for longer leases and offering two options to do so. This week, it sent a more urgent note revoking its earlier offer.

Retail real estate investment trusts may need to provide leeway on rent, Bank of America said this week after downgrading several REITs. The bank sees store closings lasting through May and the possibility of some locations going away as more fragile retailers are forced into bankruptcy.

The court system is just going to get flooded with a million of these disputes between tenants and landlords,” said Vince Tibone, an analyst at Green Street Advisors. “If the government doesn’t step in in any form or fashion, it could get ugly. They need to respond quickly.”

We have a major problem brewing that the rescue package did not cover.

This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 

EUR/USD News

GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  

GBP/USD News

NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News

Forex Majors

Cryptocurrencies

Signatures