Five percent to 10% of pre-Covid-19 demand could be decimated permanently, as 'lost store volume can't entirely be made up online,' Wells Fargo retail analyst Ike Boruchow said.
5% to 10% of pre-Covid-19 demand could be decimated permanently, as "lost store volume can't entirely be made up online," Wells Fargo retail analyst Ike Boruchow said.Pedestrians pass in front of a Macy's Inc. store in the Midtown neighborhood of New York, U.S., on Friday, March 20, 2020.is sure to leave many lasting effects on the retail industry, including bankruptcies, store closures and layoffs.
It could also mean a healthy fraction of consumer demand for clothes and shoes is lost forever, according to one analyst. Five percent to 10% of pre-Covid-19 demand could be decimated permanently, as "lost store volume can't entirely be made up online," Wells Fargo retail analyst Ike Boruchow said in a note to clients Wednesday.
Meantime, it could take at least nine months for sales levels to reach their "new normal," and consumers are likely not going to return to shopping like they used to until the 2020 holiday season, "at best," Boruchow added. Wells Fargo recently surveyed more than 1,000 U.S. consumers across various age demographics and found respondents, on average, plan to cut back their spending by roughly 8% compared with pre-Covid-19 levels. The firm said older generations are even more likely to cut back.However, he said, the pandemic has likely impaired consumer demand for apparel and footwear, longer-term.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
UK opens 10 billion pound COVID-19 aid programme for self-employedMillions of British self-employed workers will be able to apply for one-off grants of up to 7,500 pounds ($9,210) from Wednesday, as part of a government assistance package for people whose businesses are affected by the coronavirus.
Read more »
Jim Cramer reviews top 10 stocks 'for this difficult moment' on the 'Cramer Covid-19 Index''Remember, there's nothing irrational about these rallies. The stay-at-home names are simply the right stocks for this difficult moment,' the 'Mad Money' host said.
Read more »
Due To COVID-19, Manufacturing Will Experience Five Years Of Innovation In The Next 18 MonthsThe manufacturing industry must innovate for COVID-19 and these are the two areas where technology investments will happen first – necessity is truly the mother of invention.
Read more »
Ranked: The 10 US Cities Best Positioned To Recover From Coronavirus (And The 10 Worst)These are the 10 U.S. cities best positioned to recover from the coronavirus (and the worst):
Read more »
Ranked: The 10 U.S. Cities Best Positioned To Recover From Coronavirus (And The 10 Worst)Coronavirus recovery: What it will look like across America.
Read more »