AUSTIN, TEXAS — The Texas economy added 237,800 nonfarm jobs in May, bringing its current unemployment rate to 13 percent, according to a new report from the Texas Workforce Commission. Prior to the COVID-19 pandemic, the state’s unemployment rate was among the lowest in the country, clocking in at 3.5 percent in February, and the current rate of 13 percent falls below the national rate of 13.3 percent. The bulk of the employment gains — 176,400 jobs — came in the leisure and hospitality sector as hotels, restaurants, bars and movie theaters have reopened at limited capacities and with social distancing guidelines in place. Education and health services also contributed to the growth, adding approximately 52,000 new jobs. One of the first states to implement an aggressive reopening plan, Texas entered Phase III of its economic recovery plan in early June, allowing businesses to expand from 25 to 50 percent occupancy. On June 12, restaurants were permitted to boost their capacities to 75 percent, and on June 19, the state gave amusement parks and carnivals the green light to reopen at 50 percent capacities. About 2.6 million unemployment claims have been filed in Texas since mid-March when the pandemic began.
CINCINNATI — Digital sales at the Kroger Co. (NYSE: KR) increased 92 percent in the first quarter, according to the company’s latest financial results. Total company sales were $42 billion in the first quarter, compared with $37 billion for the same period last year. Cincinnati-based Kroger does not separately break out its e-commerce sales from total sales. Excluding fuel and dispositions, sales grew 19.1 percent. Kroger’s first quarter ended on May 23. Kroger says its most urgent priority during the pandemic has been “to provide a safe environment for associates and customers with open stores, e-commerce solutions and an efficiently operating supply chain.” Kroger has invested more than $830 million to reward associates and safeguard its employees, customers and communities. The company’s stock price closed at $31.80 per share on Thursday, June 18, up from $23.64 one year ago.
NEW YORK CITY — Outdoor dining services and in-store retail businesses in New York City are poised to reopen on Monday, June 22, according to a statement issued by New York Gov. Andrew Cuomo on Wednesday, June 17. The region will be the last in the state to enter Phase II of the governor’s reopening plan, which also includes the resumption of office-based jobs and real estate construction and services, as well as operations of barbershops and salons. Businesses including agriculture, curbside and in-store pickup retail, manufacturing and wholesale trade resumed operations in New York City under strict social distancing and sanitation guidelines on June 8. As of June 1, the Center for Disease Control and Prevention reported more than 386,000 cases of the COVID-19 in the state of New York and more than 30,700 deaths.
As pandemic-driven restrictions steadily ease across the country, all 50 states have now entered some form of gradual economic reopening. Customers are returning to retailers and office workers returning to their cubicles, but businesses are still struggling to recover from the impacts of COVID-19. In a webinar titled “The Future of Real Estate,” Michael Acton, head of research at AEW Capital Management, addressed key reopening data, demographic trends and his real estate outlook for the remainder of 2020 on into 2021. Natixis Investment Managers, a French-based global asset management company, hosted the event on Thursday, June 11. AEW is one of the largest real estate investment managers of all property types in the world, and both companies are headquartered in Boston. One piece of surprisingly good news came early this month when the Department of Labor reported that the U.S. economy added 2.5 million jobs in May. On the downside, slightly over 1.5 million Americans filed for unemployment for the week ending June 6. Approximately 44 million Americans — about one-quarter of the nation’s workforce — have filed for unemployment benefits since mid-March when huge swaths of the American economy went into a lockdown mode to prevent the spread of …
TRENTON, N.J. — Some pandemic restrictions on restaurants and retail stores in New Jersey have lifted, according to a statement from Gov. Phil Murphy on Monday, June 15. Outdoor dining at restaurants and bars has resumed and retail stores can now allow indoor shopping at half capacity. However, indoor dining at restaurants is not yet allowed and shopping malls remain closed. Murphy also said that libraries and yard sales can reopen using curbside pickup, and that childcare centers, places of worship, real estate open houses and car washes can resume operation. Personal care businesses, including hair salons, barbershops, nail salons and tattoo parlors, can reopen on June 22. As of June 15, the Centers for Disease Control and Prevention has reported nearly 166,900 confirmed cases of COVID-19 in New Jersey and more than 12,600 deaths.
WASHINGTON, D.C. — The advance estimate for U.S. retail and food services sales, including e-commerce, in May is 17.7 percent higher than in April, the U.S. Commerce Department reported this morning. May is the first month since the COVID-19 outbreak halted the U.S. economy that has shown positive month-over-month growth. April was down 14.7 percent from March, and March decreased nearly 10 percent from February. Spending in May was at $485.5 billion, still lower than pre-pandemic levels. February’s total spending came in at $527.3 billion. “These sales numbers do not reflect the same strength we had going into the pandemic, but they certainly reflect the trajectory we need coming out of it,” National Retail Federation (NRF) president and CEO Matthew Shay said in an interview on CNBC’s “Squawk Box.” “The most important thing now is to keep these retail stores open for business and not penalize them by closing their doors in the event of a coronavirus surge. “As those stores that remained open have shown, retailers have developed solutions that protect the safety of their customers and associates, and they are sharing those lessons to the benefit of store owners large and small in communities across the country.”
CHICAGO — McDonald’s says that U.S. same-store sales have sequentially improved from late March through May. For the month of May, the Chicago-based fast food giant reported a decline in U.S. same-store sales of 5.1 percent, compared with 19.2 percent for the month of April. Globally, sales fell 29.8 percent quarter-to-date through May. McDonald’s says that 95 percent of its restaurants globally are now open. In the United States, more than 1,000 restaurant dining rooms have reopened with reduced seating capacity. “Our unique advantages, including a high percentage of drive-thru restaurants and investments in delivery and digital, have enabled us to adapt to the changing landscape presented by the COVID-19 outbreak,” says Chris Kempczinski, president and CEO.
Western New York, Capital Region Expected to Reopen Additional Businesses This Week, Says Gov. Cuomo
ALBANY, N.Y. — As the COVID-19 pandemic gradually eases in the state of New York, Western New York and Capital Region are expected to reopen additional businesses this week, according to a statement from Gov. Andrew Cuomo on June 13. The regions will enter Phase III of Cuomo’s state reopening plan, which will include dine-in service at restaurants and the use of hotel amenities such as restaurants, spas and gyms. Phase III will also allow youth sports with limited spectators to resume. Western New York is expected to enter Phase III on June 16 while the Capital Region is expected to enter Phase III on June 17. As of June 14, the Centers for Disease Control and Prevention reported nearly 380,000 cases of COVID-19 in the state of New York and more than 30,500 deaths.
CONCORD, N.H. — Select retail businesses, including indoor seating at restaurants and recreational activities, are allowed to reopen in New Hampshire, according to a statement from Gov. Chris Sununu on June 15. Restaurants in the state were permitted to offer delivery and curbside service at the start of the COVID-19 outbreak, and outdoor seating resumed in mid-May. Both indoor and outdoor seating areas are required to position tables six feet apart, and restaurants are limited to 50 percent capacity. A number of recreational activities and other businesses have also reopened, including museums, art galleries, libraries, bowling alleys, billiards halls, gyms, pools, wedding venues, motor speedways and funeral homes. Performing arts centers and amusement parks are expected to reopen on June 29. As of June 14, the Centers for Disease Control and Prevention reported nearly 5,300 cases of COVID-19 in New Hampshire and more than 300 deaths.
CHICAGO — Chicago’s 900 North Michigan Shops reopened on Monday, June 8. Those visiting the shopping center will initially find 23 retailers. Other retailers will open at a later date. The Aster Hall food hall is open for delivery and carryout. The center features enhanced safety measures, such as touchless hand-sanitizing stations, glass dividers and elevator button covers. A special thank you message is projected on the ceiling for essential workers. The property is open daily from 12 to 6 p.m.