A new study by BDO USA shows that 18 retailers filed for bankruptcy in the first half of the year. There was hope that a decline in new COVID-19 cases and an “opening” of the economy would make a difference. Data shows that the case is otherwise. Retail traffic has not improved in the past two months at all.
[in-text-ad]
Data experts at Zenreach looked at traffic to stores by day this year as compared to 2019. There was indeed a recovery, but it flattened in early July. Since then, there has been no improvement. In recent days, numbers have actually dropped.
Zenreach made this observation:
On July 1st, traffic across all industries was at 51.9% of normal. By August 1st, 46.5% of normal. And on September 1st, 43.5% of normal. Early September saw a slight upward trend reaching 49%, but has now dropped to 43% as of September 27th.
The data includes both brick-and-mortar retail and restaurants.
Restaurants have posted some improvement, due in part to outdoor dining. However, as the temperatures drop across the northern states, that opportunity largely will disappear this month. Any rise in COVID-19 infections will trigger states that have begun to allow indoor dining to close it down.
A look at the stock prices of several mainline retailers shows that investors remain skeptical that they can post any improvement at all. Macy’s Inc. (NYSE: M) stock is off 66% this year, compared to a rise of 4% for the S&P 500. Kohl’s Corp. (NYSE: KSS) shares are down 60%, and Nordstrom Inc. (NYSE: JWN) is off 71%.
If there is a recovery in retail, traffic to stores does not show it (with the exception of big-box retailers like Walmart and Target, which have posted reasonable recoveries).
24/7 Wall St.Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.