The company estimates that 250,000 retail stores across the US have been shut for a month already, meaning the country has lost 60% of all its retail floor space. That's incomparable with the 2008 recession or fear post 9/11 and means brands have to think fast about how to change their model from retail-focused to a different model.
Some companies like Nike or Lululemon have switched to online apps and streaming, encouraging individual activities. Both of them have massively increased their number of subscribers within weeks, but it's still no substitute for retail, even if Lululemon has successfully sold yoga classes online to many thousands.
It's a temporary survival mode and it might not work for everyone. The longer people are encouraged to stay at home and remain cautious in their shopping, the thinner the chances for survival are for many retailers. Coresight Research has initially expected that 8,000 stores would permanently close following the COVID-19 pandemic. Now the estimate has been updated to 15,000 and might increase further as the disease is yet to reach its peak in the US.
