Nike, Macy’s, and Vineyard Vines are just a few of the companies currently offering decent deals online, trying to boost sales as their stores are dark.
In the midst of the coronavirus pandemic, many retailers have started offering free shipping and extending the period during which returns must be made, even if they don’t offer free shipping.
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But even with a 25% or 30% coupon in their email inbox, most consumers aren’t looking for new shoes right now. The uncertainty surrounding coronavirus has caused many to tighten their wallets. Spending is rapidly shifting away from apparel and accessories to essential items like groceries and household cleaning supplies.
Some shoppers may retreat, concerned about maintaining a steady paycheck. Goldman Sachs economists forecast historically sharp and rapid recession, with Q2 GDP falling a staggering 24% after Q1 GDP fell his 6% doing.
“In a weak demand environment we can offer discounts, but that doesn’t matter,” said Neil Saunders, Managing Director of GlobalData Retail.
Still, companies are trying.
Vineyard Vines, an apparel retailer known for its preppy clothing, is offering a 30% discount on spring clothing sitewide.
Nike We’ve emailed you a 25% discount code for the entire site.
banner above Macy’s The website says “relax, recharge, work from home” or work from home. For everyone, we offer free shipping on purchases of at least $25.We also offer free shipping on beauty purchases of $25.These deals are usually reserved for Loyalty Her members. It has been.
american eagleAerie is offering a ‘limited time’ free return, giving shoppers 40% to 60% off bras and underwear online.
Cosmetics retailer Sephora recently extended its return policy for in-store purchases to 30 days after stores reopen. He has extended the online return policy to 60 days.
Stacey Wilditz, president of retail consulting firm SW Retail Advisors, said in an interview, “We’re assuming this is going to continue for months. ‘Easter. Mother’s Day. Graduation. .”
“We’re talking sales impacts of 70%, 80%, definitely over 50%,” she said of companies selling discretionary items like clothing, footwear, handbags and jewelry.
Fitness chain SoulCycle, which has closed all of its spin studios nationwide, offers up to 75% off select workout gear on its website. I hope that the retail business can generate at least some revenue because I get nothing out of teaching classes.
Clearly, businesses cannot regain business lost online overnight. Approximately 90% of US retail sales are made in brick-and-mortar stores.
Meanwhile, these deals may be good news for shoppers looking to splurge a little, as they’re stuck working remotely for the foreseeable future, but the promotions squeeze profits.
Our big promotion in March and April is also a little different. Discounting is a tactic typically deployed by retailers around the end of the year (a time of intense price competition in the industry), after which they get rid of unsold holiday items in January.
But now many of these companies that sell discretionary items are trying to process unsold inventory while their stores are closed and drive at least some sales, so they have no other choice. .
The shutdown, which CNBC is tracking, is an attempt to stop the spread of COVID-19. Some stores closed on their own, while others closed after the state ordered residents to stay home except to eat or go to the doctor.
“I think retailers are just doing everything they can to keep their businesses moving,” Sanders said. “Pricing discipline has just been thrown out the window.”
“Retailers have gone from healthy business to survival mode.”
One analyst predicts that 2020 could be a record year for permanent retail store closures, with over 15,000 stores due to COVID-19. Retailers worried about paying rent also have to make tough decisions about what to do with all their employees. The fast-fashion chain said on Monday that H&M could temporarily lay off tens of thousands of people around the world.
Many companies, including Macy’s, nordstrom, Coles When JC Penney also withdrew its earnings guidance.many retailers including UltaTJ Max Owner TJXMore When signet jewelersuses credit lines to raise cash.
“It’s going to be very difficult to sell things at full price,” said Sarah Weiss, head of retail and restaurants at S&P Global Ratings.