While much is unknown about the long-term impact of coronavirus, retail supply chains will certainly look different once the crisis is past, industry observers agree. Multichannel Merchant spoke with experts from enVista, Le Tote and Johnson Stevens to get their views on the current situation and where things are headed.
Similar to XPO Logistics’ decision to postpone its exploration of divesting assets due to current market uncertainty caused by coronavirus, a bankruptcy court judge has granted a 45-day stay on the Chapter 11 filing of sporting goods retailer Modell’s due to the ongoing crisis and its impact on closing sales.
The impacts of the coronavirus spread are being felt everywhere across retail and ecommerce, with first stores and now ecommerce operations shut down to comply with government orders, and warehouse workers and drivers testing positive, forcing facilities to close so they can be scrubbed and restarted.
Just two months after announcing it was exploring strategic alternatives, including selling off one or more of its business units but keeping its LTL services intact, the company pulled this option off the table due to the effects of the coronavirus on markets. XPO had been looking at divestiture after a two-year, $8 billion acquisition spree.
While most of retail is in the doldrums due to coronavirus, grocers are seeing explosive growth, and e-grocery has been accelerating rapidly due to shutdowns. Scott DeGraeve, COO and co-founder of Locai Solutions, and Doug Baker, VP, industry relations at FMI, discuss what they’re seeing across the sector, and how it will change.
The coronavirus outbreak is continuing to wreak havoc on retail, with the impact going beyond store shutdowns to online business being shuttered. Companies that closed their ecommerce operations in recent days include fashion brands Reformation, Marysia and The Frankie Shop, and retailers TJ Maxx, Marshalls and HomeGoods.
The National Retail Federation and the International Council of Shopping Centers are asking the Trump administration and the federal government for relief for members who are being hard hit by the coronavirus crisis, much as are other industries such as airlines and hospitality, as mall, store and restaurant closures grow.