Retailers poised to reopen for ‘to go,’ but return of patrons no sure thing
Several malls and retailers that closed last month to slow the spread of the novel coronavirus will resume sales Friday, albeit only through phone and online orders for curbside pickup and home delivery.
But with consumers still reeling from the virus and its economic fallout, will shoppers venture out of their homes for discretionary purchases such as clothing, toys and electronics? Venky Shankar, research director of Texas A&M University’s Center for Retailing Studies, said he’s not so sure they will.
“Retailers can’t expect a flood of customers overnight,” Shankar said. “A lot of people have been laid off, and many have postponed their nonessential spending. This is going to take time.”
Retailers rejoiced last week after Gov. Greg Abbott signed an executive order allowing so-called “nonessential” stores across the Lone Star State to reopen as “retail-to-go”
operations, meaning only for curbside pickup and home delivery. Nonessential malls and retailers, such as apparel shops, have been shuttered for more than a month after local and state officials issued stay-at-home orders, forcing the temporary closure of nonessential businesses and urging everyone to avoid public places.
Retail sales nationally plunged by 8.7 percent in March, the biggest one-month drop on record, according to the latest report from the U.S. Commerce Department. Apparel and accessories sales were down 50.5 percent, furniture and home furnishing sales were down 26.8 percent, and sporting goods sales were down 23.3 percent month over month. Department store sales fell 19.7 percent, and electronics and appliance sales dove 15.1 percent month over month.
“Retailers are hurting a lot,” Shankar said. “Eventually, the economy has to reopen. The question is how soon? It has to be
“Retailers can’t expect a flood of customers overnight. A lot of people have been laid off, and many have postponed their nonessential spending. This is going to take time.” Venky Shankar, research director of Texas A&M University’s Center for Retailing Studies
done gradually and in a safe way.”
Six Houston-area malls said Thursday that some of their retail tenants will start selling products for curbside pickup and home delivery Friday. Shoppers at Baybrook, Deerbrook, First Colony, Memorial City, Willowbrook and The Woodlands malls can call or order online, drive to a central pickup location at the malls and have a store employee place their purchases in the back seat or trunk of their vehicle.
Participating mall retailers include Dillards, Dick’s Sporting Goods, The Container Store, GameStop, Loft, Nordstrom, Sears, Sleep Number, Sun & Ski Sports and Xfinity. Many retailers eager to bolster lagging sales during the pandemic are offering steep discounts to draw customers.
The Galleria — Houston’s largest mall — and others such as Houston Premium Outlets and Katy Mills remain temporarily closed, according to their websites. Simon Property Trust, the Indianapolis-based owner of the three malls, did not respond to a request for comment.
Under Abbott’s executive order, retailers must provide face masks and hand sanitizer to employees and limit the number of people inside their stores. Employees also must wear face coverings and maintain social distancing of at least 6 feet while at work.
“Retailers will have to instill confidence,” Shankar said. “Consumers have to be confident that the items they are buying are safe and that they’re not exposing themselves in the process of buying them.”
Murry Penner said he is relieved to reopen his Houston luxury apparel boutique, M Penner, on Friday. Penner temporarily closed his Uptown Park shop on March 16 — before the local stay-at-home order — and furloughed his 12 employees to help slow the spread of the novel coronavirus.
“It was the hardest and the easiest decision I have ever made,” Penner said. “We made the decision to close because we wanted to flatten the curve. I just couldn’t live with myself if my people or clients got sick.”
Penner, who sells everything from tennis shoes to custom-tailored suits, said he has been selling merchandise on social media and through friends and close clients, as well as gift certificates. However, his sales in March were down by as much as 80 percent, he said.
“It’s been a sacrifice,” Penner said.
After Abbott’s executive order, Penner said he planned to bring back his furloughed employees and launch an e-commerce shop.
“The governor and a lot of people recognize we need to move forward, but not at the cost of lives,” Penner said. “If we can do it safely, which I believe we can, it gives me and my people something to look forward to. That gives us hope. We can’t stay closed forever, or else we would go out of business.”