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Retail industry faces ongoing duress amid pandemic and economic disruption
MAY 29, 2020

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Retail industry faces ongoing duress amid pandemic and economic disruption

by Loretta Clodfelter

The COVID-19 crisis has been accelerating and exacerbating existing trends, and one of those existing trends is the so-called “retail apocalypse” — the long-term rise of online shopping and its threat to brick-and-mortar stores. That slow and steady shift in consumer behavior has taken a drastic turn amid the COVID-19 pandemic, as governments moved to close all nonessential businesses through stay-home and shelter-in-place orders.

“The sector was under duress heading into the crisis, and forced store closures have only exacerbated these pressures,” says Kevin White, co-head of research and strategy, alternatives, at DWS.

“This is the end of the mall,” says Scott Crowe, chief investment strategist of CenterSquare Investment Management. He says it is possible the number of malls could drop from 1,000 to 200.

“Even after the lockdowns end, we think malls will continue to struggle,” agrees White. “Initially, consumers may avoid enclosed shopping

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