When One Door Closes, So Do the Rest

With the livelihood of retail teetering on the brink of seeming extinction, boarded up businesses are beginning to face the true brunt of the COVID-19 crisis. Brick and mortar was one of, if not the hardest hit sector of the fashion industry. Usually bringing in a large sector of business for stores with high traffic (and high rent) areas in New York City, a declining trend of foot traffic accelerated by the complete lack thereof is causing doors to shut completely.

Brands today are beginning to pinch pennies. Inditex, the company who owns brands like Zara, Bershka, Massimo Dutti, and many more are set to close 1,200 stores globally as they shift to an e-commerce focused strategy. Valentino and Victoria’s Secret are among major retailers on Madison Avenue entering legal battles in regards to rent payments and overall, over 4,300 stores are reported to be closing in the 2020 calendar year alone.

As the pandemic continues to pillage through the American population, a majority of these store closures are on domestic soil. Other nations that were able to bend the curve of the spread and open back up slowly and with more aggressive mitigation measures have not felt the same kind of retail impact that the United States has. In an industry that requires assistance, trying things on, touching and feeling the product, it is truly a challenge. Because of that, in-store retailers are often the last to open in regards to phased safety measures. And as the US sees no decline in caseloads, the timeline for when those phases are reached keep getting pushed back. 

In an ongoing trend of the steady decline of retail, it begs the question of- who will afford to pay rent, what will they do with their space if they don’t see shoppers, and if there is a mass clearout, what will fill vacancies? As spending power diminishes and purse strings tighten in crowded cities, it doesn’t seem like a boom of retail activity will happen anytime soon. What I can see as the next reality for the New York City retailscape is a continued closure of department stores and boutique shops. As stores are eventually safe to reopen, customers will seek concept shops for experiences and connectivity with brands rather than just going in to shop. Additionally, there will need to be new training for sales associates. Methods of ensuring sanitation amidst this while keeping excitement is key as well. How long will it be before people are even comfortable trying on clothes that someone else might just have? Sales associates will be trained as ambassadors and liaisons for relaying the brand to their customers, rather than convincing them to jump into this season’s midi dress.

By: Adi Shoham

IG: @adiblossom