WASHINGTON, D.C. — As the COVID-19 pandemic continues to affect the U.S. economy, nearly 3.2 million Americans filed first-time unemployment claims in the week ending May 2, the Department of Labor reports. Since mid-March, 33 million citizens have filed for first-time unemployment. The Department of Labor also reports that, despite the overall rise in claims, the week-to-week numbers have declined for five consecutive weeks. The most recent figure shows 677,000 fewer claims than the week ending April 25. The four-week moving average was nearly 4.2 million, a decrease of 861,500 from the previous week’s revised average. As of this writing, there were 73,431 deaths and more than 1.2 million confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).
WASHINGTON, D.C. — The National Retail Federation’s (NRF) chief economist Jack Kleinhenz says that as some states begin reopening stores and other businesses, the national economy’s recovery will likely be a gradual process and vary by location. “Getting back to work or shopping in a pre-virus manner is difficult to predict at this time, with households likely to tiptoe back in rather than making an immediate return to the lives they experienced before,” Kleinhenz said in the May issue of NRF’s Monthly Economic Review. “My overall impression is that the recovery will have fits and starts among states, regions and cities depending on the severity of the pandemic in their localities.” The NRF reports that retail sales saw their worst month-over-month drop on record in March, falling 8.7 percent from February. Consumer spending fell an annualized 7.6 percent during the first quarter, the largest drop since the second quarter of 1980. Consumer confidence hit 86.9 percent in April, the lowest since 2014, according to the Conference Board’s Consumer Confidence Index. Even through the decreasing confidence, Kleinhenz says most people expect to see a rapid recovery. “The gap between opinions on current and future conditions indicates that consumers expect a V-shaped …
DALLAS — Neiman Marcus Group has filed for Chapter 11 Bankruptcy protection as the Dallas-based luxury retailer enters into negotiations with creditors to restructure its debt. Upon emergence, the company anticipates that it will eliminate approximately $4 billion of its existing debt. Neiman Marcus has secured $675 million in debtor-in-possession financing from creditors to enable business continuity during the bankruptcy proceedings. These creditors have also committed to a $750 million exit-financing package that would provide additional liquidity for the business. Neiman Marcus Group, which also owns Bergdorf Goodman and Last Call, recently extended temporary closures of all its stores through May 31, although a total of 10 Neiman Marcus stores in Texas, Tampa, Las Vegas and Tysons Corner, Virginia, are offering curbside pickup. About a month ago, several news outlets including Reuters, Bloomberg and The Dallas Morning News reported that the company would be furloughing the majority of its 14,000 store employees. Neiman Marcus, operates 43 Neiman Marcus stores, two Bergdorf Goodman locations and 22 Last Call outlets, expects to complete the proceedings by this fall.
PORT WASHINGTON, N.Y. — The total number of customer transactions at restaurant chains nationwide showed improvement for the second week in a row during the week ending April 26, according study by The NPD Group (NPD), a market research company headquartered in New York. The study indicated that total customer transactions were down 32 percent for the week ending Sunday, April 26 relative to that time a year ago. Transaction volume had been down 36 percent for the week ending Sunday, April 19, relative to that time in 2019. Most restaurants in the country have been either closed outright or are operating with severe restrictions since the COVID-19 outbreak began. Even as the economy slowly restarts state-by-state, many consumers remain hesitant to return to dining rooms. NPD reported that approximately 20,000 restaurants restarted in Georgia on April 27, followed by 60,000 in Texas, with both states enforcing strict guidelines for reduced occupancy and heightened sanitation. While more than 300,000 restaurants may potentially reopen for dine-in service in the coming weeks, NPD notes that an unknown number of restaurants may not be able to afford to ever open again. In New York, the epicenter of the coronavirus in the Northeast, restaurants …
It’s not the outright fear or negativity surrounding the COVID-19 outbreak that most concerns those in the commercial real estate (CRE) industry. Rather, it’s the uncertainty. That’s according to a market confidence survey polling those in the broker, appraisal, lending, investing and environmental consulting/engineering sectors on how they have been impacted by COVID-19 and the resulting recession. LightBox, a real estate technology firm, conducted the poll from mid-April through the end of the month. The survey indicates that the top three concerns for CRE professionals are the unknown duration of the pandemic, rising unemployment and the difficulty of accurately forecasting business activity. “There is no shortage of uncertainty about when sellers will be comfortable putting properties back on the selling block, when lenders will be less skittish about originations or when the impact of the pandemic on property values is clearer,” says Dianne Crocker, principal analyst with LightBox. “Ultimately, the effects on the commercial real estate market will vary by geography and asset class and will depend primarily on how quickly the health crisis is controlled and the duration of the economic shutdown.” Lenders, consultants, appraisers and others in the field fear the consequences of instability on their businesses long …
SEATTLE —Nordstrom plans to permanently close 16 of its 116 full-line stores, with the company incurring the non-cash impairment charges associated with the closures. The clothing retailer hopes the closures will better position it for the long-term retail landscape at the end of the COVID-19 pandemic. The list of stores was not released. “We’ve been investing in our digital and physical capabilities to keep pace with rapidly changing customer expectations,” says Erik Nordstrom, CEO of Nordstrom Inc. “The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers.” “More than ever, we need to work with flexibility and speed,” he adds. “Our market strategy helps with both, bringing inventory closer where customers live and work, allowing us to use our stores as fulfillment centers to get products to customers faster, and connecting digital and physical experiences with services like curbside pickup and returns.” The retailer is also restructuring its regions, support roles and corporate organization for greater speed and flexibility. This restructuring is expected to result in expense savings of approximately $150 million. That savings represents 30 percent of the company’s previously announced plans for net cash reductions of more than $500 million in operating expenses, …
DALLAS — Gold’s Gym, a fitness chain founded in California in 1965 and now headquartered in Dallas, has filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code as it works to restructure its debt. In a statement issued earlier this week, the company said that the financial fallout from COVID-19 has forced it to permanently close about 30 company-owned gyms. The company also said that the filing would not impact its licensing division and was not associated with any of its locally owned franchise gyms. Gold’s Gym has about 700 locations worldwide.
NEW YORK CITY — In an unprecedented response to unclean conditions amid the COVID-19 outbreak, New York City has ceased its 24-hour subway system, implementing overnight closures beginning in the early morning on May 6. The system’s 472 stations closed for deep cleaning from 1:00 a.m to 5:00 a.m. and will remain closed during those hours until further notice. New York Gov. Andrew Cuomo ordered the shutdown in response to unsafe conditions, including increased crime and homeless sheltering in the subway, despite the Metropolitan Transportation Authority reporting a 90 percent drop in ridership to less than 500,000 passengers per day. New York City remains the epicenter of the virus, and the state had more than 312,800 cases and 24,700 deaths as of May 5, according to the Centers for Disease Control and Prevention.
WASHINGTON, D.C. — The American Hotel & Lodging Association (AHLA) has released its “Stay Safe” cleaning standards initiative. AHLA rolled out the guidelines to aid hotel chains that are reopening during the COVID-19 pandemic. The Washington, D.C.-based organization created the standards with help from an advisory council comprising industry leaders and public health experts. The initiative encourages the use of cleaning products that have a concentration of bacteria-killing ingredients, in accordance with the Centers for Disease Control and Prevention (CDC). Participating hotel chains will also train staff on safety and sanitation in regard to COVID-19. “Safe Stay was developed specifically to ensure enhanced safety for hotels guests and employees,” says Chip Rogers, president and CEO of AHLA. “While hotels have always employed demanding cleaning standards, this new initiative will ensure greater transparency and confidence throughout the entire hotel experience.” In April, Hilton Hotels and Marriott International unveiled their own protocols for enhancing guest and employee safety.
AUSTIN, TEXAS — Texas Gov. Greg Abbott announced on Tuesday that he would expand the reopening of certain businesses and activities. Beginning Friday, May 8, retailers such as barbershops, nail salons, tanning salons and similar businesses may reopen provided they maintain six-foot distances between workstations. Public swimming pools may also reopen this Friday. Beginning Monday, May 18, office buildings and manufacturing plants that produce nonessential goods may also restart their operations at 25 percent of their normal occupancies. Abbott issued orders last week allowing retailers, restaurants, gyms and entertainment venues to resume business under limited capacity. Officials also announced the formation of surge response teams comprising members of the Texas Military Department, the Texas Emergency Medical Task Force and BCFS Health and Human Services. Surge response teams will serve nursing homes, prisons, packing plants and other facilities that experience flare-ups of COVID-19 by providing personal protective equipment, testing supplies, onsite staffing and assessment assistance. These teams will also work with local officials to establish health and social distancing standards to contain these outbreaks.