Coronavirus Tracker: May 15

US: Over 1.4M Cases - 87K Dead - 319K Recovered
Worldwide: Over 4.5M Cases - 306K Dead - 1.7M Recovered

U.S. Law Enforcement Deaths | NYPD Deaths: 41
Private Industry Security Guard Deaths: 102+
 

---

"If this isn't the retail apocalypse, I don't know what would be."

Lead S&P Analyst Says 19 Retailers Could Default on Debt,
Only 5 Did During the 2008 Recession

Coronavirus Finishes the Retail Reckoning That Amazon Started

Thousands of stores will close permanently as the Covid-19 pandemic
turbocharges a shift to e-commerce

Amazon.com hurt many retailers. Coronavirus will finish some of them off.

Even as malls and stores begin to reopen, the Covid-19 pandemic has taken a toll on an industry already battered by the shift to online shopping. More than two million retail jobs disappeared in April as many stores closed.

Roughly 100,000 stores are expected to close over the next five years - more than triple the number that shut during the previous recession - as e-commerce jumps to a quarter of U.S. retail sales from 15% last year, UBS estimates. The turbocharged shift to e-commerce is expected to further depress profit margins and accelerate a shakeout in a country that already had too much bricks-and-mortar space for an increasingly digital world.

Just this month, luxury retailer Neiman Marcus Group Inc., apparel seller J.Crew Group Inc. and Stage Stores Inc., an operator of rural department stores, have filed for bankruptcy protection. J.C. Penney Co. is teetering on the edge after missing two interest payments. Collectively, they operated roughly 2,500 stores last year and employed nearly 120,000 people.

"If this isn't the retail apocalypse I don't know what would be," said Sarah Wyeth, the lead analyst for retail and restaurants at S&P Global Ratings. Ms. Wyeth estimates that there is a 50% chance that 19 retailers tracked by S&P will default on their debt. Five retailers defaulted during the 2008 recession. wsj.com

Private Equity: The Double-Edged Sword That's Taking Out Retailers One By One
J. Crew and Neiman Marcus were each facing a host of issues before the coronavirus pandemic forced them to close their stores and eventually file for bankruptcy, including trouble adjusting to the rise of e-commerce and a lack of connection with a new generation of shoppers.

But they also shared one increasingly common problem for retailers in dire straits: an enormous debt burden - roughly $1.7 billion for J. Crew and almost $5 billion for Neiman Marcus - from leveraged buyouts led by private equity firms.

Like many other retailers, J. Crew and Neiman over the past decade paid hundreds of millions of dollars in interest and fees to their new owners, when they needed to spend money to adapt to a shifting retail environment. And when the pandemic wiped out much of their sales, neither had anywhere to go for relief except court. nytimes.com

JC Penney makes $17 million interest payment as it explores bankruptcy
The company had a grace period of five business days to make the $17-million interest payment, or else be in default. It said it continues to explore "certain strategic alternatives." CNBC reported Thursday night the retailer was currently working on a bankruptcy filing that could come as soon as Friday. They cautioned there is still a chance that final negotiations between the retailer and its lenders spill into the weekend and delay the filing. Paying that interest payment may be one form of J.C. Penney negotiating with its lenders. cnbc.com

Office Depot plans store closures, 13,100 job cuts by 2023
As part of a cost-cutting effort, Office Depot said it will be laying off about 13,100 employees, in addition to closing stores and distribution centers.

The office supply and business solutions retailer announced the job cuts on Thursday in a Securities and Exchange Commission filing, saying it was looking to "realign its operational focus." The company said the restructuring plan is expected to be completed by the end of 2023 and is being implemented to shift its focus to its business-to-business solutions and IT services business units. ibtimes.com

Retail sales plunge a record 16.4% in April, far worse than predicted
Consumer spending tumbled a record 16.4% in April as the backbone of the U.S. economy retrenched amid the coronavirus pandemic, according to a government report Friday.

Economists surveyed by Dow Jones expected the advanced retail sales number to fall 12.3% after March's reported 8.3% dive already had set a record for data going back to 1992. The March numbers were revised to be not as bad as the 8.7% initially reported.

Clothing stores took the biggest hit with a 78.8% tumble. Other big losers were electronics and appliances (-60.6%), furniture and home furnishing (-58.7%) sporting goods (-38%), and bars and restaurants (-29.5%). Nonstore retailers rose 8.4%. cnbc.com

NRF responds to April retail sales amid pandemic
The National Retail Federation issued the following statement from President and CEO Matthew Shay in response to the U.S. Census Bureau's release of April retail sales data:

"These retail sales numbers are not a surprise given the current state of affairs. The vast majority of retail stores have been closed, we are in the midst of historic unemployment and when it comes to personal finances, discretionary spending takes a back seat to essentials. Prior to this pandemic, retail was setting records in year-over-year growth, employment and investment. It is a resilient industry serving a smart consumer, and despite today's report, we know it will be leading our nation's economic recovery as this crisis recedes." nrf.com
 

NRF's Operation Open Doors 'like having a roadmap' to reopening after COVID-19
Developed with input from hundreds of retailers brought together by NRF, the initiative provides operational guidelines and considerations in four areas: health and safety, people and personnel, logistics and supply chain, and litigation and liability. An online resource center includes an interactive map of coronavirus rules, regulations and other information from all 50 states down to the city and county levels including the status of stay-at-home orders. A federal agency and state tracker offers information on loan forbearance and lease enforcement, and a 10-page checklist addresses issues from appointing a "return to work" team to how to sanitize cash registers and restrooms.

The guidance emphasizes a gradual, phased-in approach to reopening the economy and retail facilities. Materials created so far focus on dozens of critical topics that need to be addressed, and retailers organized into working groups based on the four main categories are continuing to meet weekly by conference call to address details and develop additional guidance.

How to Accommodate At-Risk Workers
The Equal Employment Opportunity Commission (EEOC) has updated its guidance on COVID-19 and the Americans with Disabilities Act (ADA), clarifying how to accommodate individuals who are at high risk for severe illness from the coronavirus.

Read more about: Direct-Threat Standard | At-Risk Workers | What If the Employee Does Not Request an Accommodation? | Managerial Training | Responsive Process | shrm.org

LP Director Warns of Risks Arising from the Accumulation of Cargo
The current pandemic has disrupted global supply chains in a wide variety of ways. In particular, the lag in its effects between the large-scale sourcing regions of China and other parts of Asia and the consuming markets of Europe and North America has caused significant build-ups of goods produced in the former regions but not now required in the later.

"Security is clearly the most dominant of the risk issues as operators seek alternative storage," comments Michael Yarwood, Managing Director Loss Prevention at TT Club. "Whether it's taking up buildings not usually used for storage or laden vehicles parked adjacent to a full warehouse, or simply facilities unfamiliar to the operator, the security regime may not be of a similar standard. This concern is not just limited to fencing, lighting, security patrols and CCTV, but also communication with hauliers delivering cargo to the unfamiliar premises. There is also the constant danger of vehicles being diverted into the hands of criminals; so-called round the corner theft," emphasises Yarwood. sdcexec.com

Why are some flights still full?
U.S. airlines are facing a new challenge over whether to fill planes to claw back revenue at the expense of social distancing. Passenger numbers are increasing on domestic flights, leading to customer complaints over close proximity to others, despite heavyweights such as United Airlines claiming 85% of its flights are less than half full. U.S. carriers slashed their schedules by 90% or more in May given the absence of customers, with industry leaders foreshadowing hefty job cuts in the near future as government bailouts dry up. linkedin.com

60 Minutes shows Amazon's virus-killing robot;
Amazon using AI to enforce social distancing
Amazon is developing a robot that would roll through grocery stores and distribution centers, using banks of ultraviolet light to kill viruses on surfaces.

The company provided "60 Minutes" with video of a prototype of the robot for a report Sunday night about Amazon's response to the COVID-19 crisis, and the backlash from workers who want the company to close down distribution centers for cleaning and disinfection when employees test positive.

It's part of a technological show-of-force from the company, seeking to demonstrate its efforts to battle COVID-19 in the face of criticism from employees and others.

In addition, 60 Minutes reports that Amazon is "trying to enforce social distancing by videotaping all its employees and using artificial intelligence to study their movements." The report notes that cameras are "also being used for contact tracing in order to identify workers who came in contact with a sick colleague and send them into quarantine." geekwire.com

A seventh Amazon employee dies of COVID-19 as the company refuses to say how many are sick

Jeff Bezos Is Expected to Become the World's First Trillionaire by 2026

Amazon to bring new COVID-19 face shield model to market

CVS Health opening 50 COVID-19 test sites this week

Parent company of Coach reopening stores by market

Apple to Reopen 10 of 17 Retail Stores in Italy Next Week

Rag & Bone Lays Off Retail, Corporate Workers

Kroger Hires 100,000 in Last 8 Weeks

Kroger to wind down 'hero' pay; union urges to keep 'for as long as we face a global pandemic'

Gov. Cuomo extends New York's stay-at-home order until June 13

New Jersey OKs nonessential retail curbside pickup

Ontario to allow stores and other businesses to reopen May 19

US grocery costs jump the most in 46 years, led by rising prices for meat and eggs

1 in 4 restaurants won't re-open after pandemic, study says

 

Lawsuits Against Retailers Over Deaths

Springfield, MO: Relatives sue Academy Sports for selling bullets used in 3 killings
Relatives of one of three people shot to death in Springfield in 2018 are suing Academy Sports and Outdoors for selling bullets to a woman who gave them to the man charged in the killings. The lawsuit alleges a worker at Academy Sports in Springfield should have realized the woman who bought the bullets, Nyadia Burden, intended to give them to Luis Perez. Perez, 24, couldn't buy ammunition because he was in the country illegally, had no driver's license and was facing felony charges, according to police. The lawsuit also names Burden. stltoday.com

Beavercreek, OH: Family of Man Shot in Walmart Wrongful Death
Settles Suit With City for $1.7M
The family of a black man who was fatally shot by a white police officer in an Ohio Walmart store has settled a wrongful death lawsuit with the city. Beavercreek police officer Sean Williams shot John Crawford III, 22, soon after he picked up an unpackaged pellet rifle that he found on a store shelf in August 2014. The family's lawyer tells the Cincinnati Enquirer the city and Crawford family reached a $1.7 million settlement agreement and police policy changes. The family intends to move forward with a wrongful death lawsuit against Walmart, which is scheduled to go to trial on Nov. 2. wosu.org

Boca Raton, FL - Delivery Murder:
Family of slain woman drops lawsuit against Best Buy, others
A 21-year-old Hialeah man who was delivering appliances to a 75-year-old retired librarian and grandmother from Boca Raton is charged with fatally beating her. Her family dropped a lawsuit against Best Buy, freight carrier J.B. Hunt and XM Delivery. The filing does not say why the suit was dropped or say anything about a settlement or settlements. palmbeachpost.com

Class Action Lawsuit Filed Against Ikea Over Faulty Furniture Recall
A class action lawsuit was filed against Ikea on May 6, 2020, alleging that the company marketed and sold millions of dressers it knew were prone to dangerous tip-overs, and then failed to issue adequate notifications and refunds to customers for the dressers after they were recalled in 2016. For years, Ikea has repeatedly come under fire for selling unsafe dressers that did not meet voluntary industry stability standards and for its handling of the recall, which was announced in 2016 and reannounced in 2017, and ultimately included 17.3 million dressers. consumerreports.org
 

Europe's LP Think Tank:
ECR Shrinkage & OSA Group To Hold Series Of Virtual Seminars

Sell More, Waste Less - Discussion Group Series - June 24th & 25th
 

The ECR Community Shrinkage & OSA Group have announced details of a series of six virtual discussion sessions, taking place at the end of June.

The 60-minute sessions are aimed at aimed at retail and consumer goods professionals involved in store operations, loss prevention, checkout management, product management and customer experience.

Each will feature research presentations from retail executives and academics, followed by a facilitated group discussion on the points raised therein.

The ECR working group on Food Waste and Markdown, started in 2015, consists of retailers and producers from across Europe, including Asda, Aholddelhaize, Aldi, Carrefour, Dunnes, Jumbo, Jeronimo Martins, Fyffes, Lidl, Metro, M&S, Tesco, Waitrose, Sonae and others. esmmagazine.com

See the webinar schedule and register here: ecr-shrink-group.com


'Bass Pro Challenge'
Estero, FL: Man dives into fish tank at Bass Pro Shops
A video has been circulating of a man jumping into the large fish aquarium in the Bass Pro Shops in Estero. Daniel Armendariz, 28, is said to be the man in the video. Armendariz jumped into the large fish aquarium, exited the tank, and ran out the store fleeing in a silver sedan.

This incident will cost Bass Pro Shops approximately $3,000 to decontaminate the aquarium for marine life and fish species. Armendariz has an arrest history for robbery, aggravated battery, and sale/delivery of drugs. Armendariz will also be charged with trespassing. fox4now.com nbc-2.com


Quarterly Results
The Container Store Q4 comp's down 3.6%, net sales down 4.7%, full yr comp's up 2.9%, net sales up 2.3%
Jack in the Box Q2 comp's down 4.2%