US Retail Bankruptcies, Store Closures Set Record -- WSJ -- September 29, 2020

A reader sent this link from The WSJ:

From the linked article:

Retail bankruptcies, liquidations and store closings in the U.S. reached records in the first half of 2020 as the Covid-19 pandemic accelerated industry changes, particularly the shift to online shopping, according to a report.

In the first six months, 18 retailers filed for chapter 11 protection, mostly concentrated in apparel and footwear, home furnishings, grocery and department stores. 

They include department-store operators Neiman Marcus Group Ltd., J.C. Penney Co. and Stage Stores Inc., home-goods retailers Pier 1 Imports Inc. and Tuesday Morning Corp. and vitamin seller GNC Holdings Inc.

From July through mid-August, 11 more retailers filed, including apparel retailers Lucky Brand Dungarees LLC, Brooks Brothers Inc., Ann Taylor parent Ascena Retail Group Inc., Stein Mart Inc., and Men’s Wearhouse and Jos. A. Bank parent Tailored Brands Inc.

This year is on pace to rival 2010, when 48 retailers filed for bankruptcy in the wake of the 2007-09 recession, BDO said. Retail bankruptcies in 2020 have already surpassed the 22 such filings recorded last year.

“This is almost certainly the worst year in recent history for retail,” said Kyle Sturgeon, a managing partner at Atlanta-based turnaround advisory firm Meru LLC.

My e-mail reply, not ready for prime time:

This is a huge story. I don't think folks realize how the pandemic telescoped 2020 - 2035 into 2020 - 2022.

These retail stores were on their way out any way, and would have been dead by 2035, but the pandemic simply hastened the inevitable. Do any of the stores on that list above surprise you? JC Penney was on its way out well before the pandemic. Same with Pier 1 imports. 

Most interesting: men's clothing stores. Men aren't going into work; they don't need new outfits. 

Women? I'll have to let the women advise me on this one, but I didn't see a lot of women's stores in that list. If accurate, speaks volumes. Women buy clothes for all seasons, all reasons.

Anyone working in NYC sees it and anyone with kids in school see it: the telescoping of 2020 - 2035 into 2020 - 2022. This is simply amazing. Expect to see a number of books on the subject arriving any day now.

Universities and colleges are going to have a devil of a time competing with "learning centers" that don't require living on campus. None of three granddaughters have been "IN" school yet this year, and are probably learning more than ever before. Just their technology skills alone are incredible. Six-year-old Sophia is reading at a much higher level because the instructions are written for adults with at least an 8th grade education.

And I can't believe how she zips through applications on her school iPad and my iPad.

And retail. Last night at 11:00 p.m. I decided I wanted to buy an outfit for Sophia's closest friend, and I simply went to Amazon and bought it. With all the points on my credit card item was free with free shipping. And while I was there, bought more printer ink.

When Obama said "these jobs weren't coming back," he was just talking about the wrong industries. 

Restaurants:

This will also change dining out habits for Americans. In the 1950s, a short-term fad: microwave and TV dinners. Then fast food craze -- McDonald's. Then dining out in general. I think I read a couple of years ago, Americans ate 50% of their meals outside the home. Then pizza delivery. And, of course, Starbucks. 

Now, people are getting used to contactless delivery. And they're finding out how convenient it is. And how expensive. They're finding out what travels well and what doesn't (French fries don't travel well at all, and can't be re-heated in the microwave). 

Six individual meals in the restaurant at $25/person? Families are now ordering "family meals" for much less. And now drinks. And no desserts.

They're also realizing the $40 bottle of wine at the restaurant can be had at home for about $12. That $4 bottle of bottled water at the restaurant; about twenty cents at home. They're finding that the mark-up on sides is not worth it: vegetables, particularly. They can heat fresh or frozen vegetables in the microwave while waiting for delivery.