MAY 2020 RETAILOBSERVER.COM
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HOW RETAILERS ARE ADJUSTING
All businesses have been forced to adjust to operating under
these new economic and societal conditions, and the
independent retail sector is no different. Here's a glimpse at
some of the ways appliance, furniture, bedding and consumer
electronics retailers are shifting their businesses.
The most notable increase is around the number of stores
that have implemented reduced hours. Just 20 % of all dealers
said they had shortened their hours in our first survey. That
number jumped to 53% by April.
SALES COMPS ARE DECLINING
It's a grim reality, but with stores closing and foot traffic
evaporating, the sales figures won't be pretty to look at –
especially as we get further into this national lockdown.
Early on, retailers reported holding on pretty well to their year-
over-year comps for March. In fact, 53% of retailers said they
were realizing sales that were either flat or growing in their YoY
comps. In our April 2 survey, that figure fell off to 38% .
RETAILERS SEEK FINANCIAL ASSISTANCE
Perhaps unsurprisingly, retailers are readily getting in line to
try to secure financial assistance. One major source of that
assistance will come in the form of the federal CARES Act,
which provides some $ 350 billion in funding for small business
loans that could be completely forgiven if used on payroll and
specific business expenses.
