Apple again closing a dozen stores where coronavirus surging

Apple’s decision Friday to close stores in four states with surging coronavirus cases highlights a question that other businesses may soon face: stay open or prepare for more shutdowns?

Apple, like many other major U.S. retailers, shut down all its U.S. locations in March. On Friday, it said it would shut seven stores in Arizona, two in Florida, two in North Carolina and one in South Carolina that it had reopened just a few weeks ago.

The move heightens concerns that the pandemic might keep the economy in the doldrums longer than expected. Those worries sent stocks on Wall Street lower. It’s not clear whether other retailers will follow, although one analyst expects hard-hit stores to stay open unless forced to close by local authorities.

Many other businesses, including manufacturing, travel, dining and entertainment, have been steadily reopening where they can while taking health precautions. But some have recently pulled back or paused their plans. The Cruise Lines International Association, for instance, announced Friday that ships will not be sailing from U.S. ports until at least Sept. 15, extending a pause put in place because of the pandemic.

The auto industry, meanwhile, has seen its efforts to restart production hampered in part by infected workers.

Because U.S. efforts to contain the pandemic haven’t been particularly successful, the situation “could ultimately lead to a need for more prolonged shutdowns” that would reduce consumer spending and cost jobs, said Eric Rosengren, president of the Federal Reserve Bank of Boston.

States such as Utah and Oregon are pausing the reopening of their economies amid a spike in cases, while others like Texas and Arizona have not changed their plans. Arizona this week did mandate that businesses implement social distancing, and Phoenix made masks mandatory in public.

Like many of the biggest players in the technology industry, Apple has been faring far better than most companies amid pandemic-induced recession. The store closures won’t put a significant dent in Apple’s sales, said Wedbush Securities’ Daniel Ives, but they are “a worrisome trend.”

Retail has been hit hard, with declining profits and bankruptcies. Retail earnings shrank 70% in the first quarter, excluding Walmart, said Ken Perkins of Retail Metrics, and second-quarter earnings are expected to drop another 45%. Department stores Neiman Marcus and J.C.Penney and clothing chain J. Crew have all filed for bankruptcy protection. Home-goods chain Pier 1 is shutting down.

Disney, which has been planning to reopen Disneyland in California and Disney World in Orlando, Fla., in July, is not changing its plans. Universal Orlando, Busch Gardens Tampa Bay and SeaWorld have already reopened in Florida. Cases are also rising in Florida, and some restaurants and bars said they were temporarily closing again.