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Nordstrom joined a growing list of retailers closing their doors and said it would withdraw its 2020 financial outlook as shoppers stay home and governments restrict commercial activity to contain the spread of coronavirus.

Starting Tuesday, all 116 Nordstrom stores in the United States, Canada and Puerto Rico, and 248 Nordstrom Rack locations will close for two weeks. The Seattle-based department store chain said it will provide pay and benefits during this period, and that its online business — which made up a third of its 2019 sales — will continue operating.

Though February sales met expectations, Nordstrom said that it has “experienced a broad-based deceleration in customer demand over the past couple of weeks, particularly in markets most affected by the virus.”

“During this unprecedented period of uncertainty, we have in place the appropriate business continuity plans, operational framework and team,” said CEO Erik Nordstrom. “This, in concert with ending 2019 with a solid financial position and healthy balance sheet, gives us the ability to weather this challenging moment in time.” Company shares are down 60 percent in the past year.

Nike, Apple and Urban Outfitters are among the retailers that have suspended their brick and mortar operations. The closures come as an increasing number of states are imposing sharp restrictions on retail, restaurants, bars and casinos to limit crowds and keep people at home. And with many retail stores already facing razor thing margins, it’s unclear how long the industry and its workers can hang on.

In a Tuesday analyst note, Cowen’s Oliver Chen wrote that he expects “broad store and mall closures” to adhere to social distancing policies. Chen wrote that even though online sites are still an option, store closures deal a blow to financial results and “compound stress in an already declining traffic environment for mall retailers.” Moreover, if the outbreak extends beyond the first quarter, apparel companies that source from China could risk not receiving new products ahead of the summer and fall seasons, Chen wrote.

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https://www.washingtonpost.com/business/2020/03/17/stocks-markets-live-updates-coronavirus/

2020-03-17 15:10:45Z
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