This post may contain affiliate links and Corporette® may earn commissions for purchases made through links in this post. As an Amazon Associate, I earn from qualifying purchases.
A lot of department stores and other retailers are in trouble right now, with their brick-and-mortar stores closed indefinitely due to the pandemic and many potential customers not currently in a place to buy anything anyway.
The major online sales going on lately are an obvious sign of their struggles. Some of them were in trouble even before COVID-19 became a problem — especially department stores and mall stores — and coronavirus' impact on the economy will probably deal the final blow. (Meanwhile, major stores like Walmart, Target, and Costco are doing well in comparison.)
We recently talked about supporting local businesses during coronavirus, so we were curious — which major retailers are in danger of closing because of coronavirus?
Questions for you all to consider: Where are you still shopping now, if at all (for workwear or other things)? Where have you stopped shopping? Which stores would you miss the most if they had to close permanently — or is the shopping experience at many of them fungible to you? (Have you been taking advantage of the huge sales out there?)
Here are the statuses of some major retailers for workwear at the moment — it's not looking good:
- Neiman Marcus: expected to seek bankruptcy protection as early as today [Reuters]
- Macy's (which owns Bloomingdale's): taking on billions in debt and trying to avoid bankruptcy [CNBC]
- Nordstrom: put off paying vendors and canceled some vendor orders [NYT]
- J.Crew: was planning to spin off Madewell to pay down debt, but now may not be able to [CNN]
- Gap: cut executive pay, not paying April rent for stores [CNN]
- Ann Taylor: parent company of Ann Taylor, Loft, Lane Bryant, etc., may be headed for restructuring [RetailDive]
- Anthropologie: parent company borrowed $220 million, canceled some orders and new store openings, stopped paying rent [Drapers]
- Lord & Taylor: laid off its executive team; heading toward liquidation [NYT]
- JCPenney: reportedly seeking around $1 billion in bankruptcy funding [MarketWatch]
(RetailDive actually keeps a running list of all retail bankruptcies for the year…)
So, readers, do tell: Where did you used to shop frequently but no longer do, for coronavirus-related or other reasons? Which of your favorite clothing stores seem to be in trouble (including those that haven't been doing well for a while), and which of your favorites already closed permanently?
Pre-pandemic, did you still go to malls to shop for clothes or anything else? In general, are you curious about which major retailers are in danger of closing because of coronavirus, either as a shopper or an investor?
(In our last discussion on whether you prefer to shop online or in store, a lot of people noted that they were strongly on Team Online or Team In-Store… Have the shutdowns changed that for you at all?)
anononon
This is so interesting. Thanks.
NOLA
That’s interesting about Nordstrom. I have ordered some items from them and haven’t received anything, but have ordered from Rack and gotten my orders fairly quickly. I normally order from Macy’s pretty frequently, but mostly when I can return in person. I don’t think I have ordered anything since the shutdown.
Cat
I’ve placed 3 orders with Nordstrom since shutdown and all have shipped faster than promised (by like a week). I’m hesitant to order much new, even with free return shipping – hassle to deal with the post office. But the discounts on things like staple brands for me and makeup had me open my wallet.
And aside from wanting to avoid the post office altogether, Jcrew charges for return shipping so I’ve been avoiding them (normally not an issue for me as I’d take returns back to my local store). Normally they are one of my staples for work pants in particular.
I enjoy making the occasional splurge at NM but that’s a 1-2x per year visit, not regular orders.
I haven’t shopped at several of these stores for years so wouldn’t miss them personally (AT lost me awhile back, Penney’s, Lord and Taylor, Gap only at Athleta).
Panda Bear
I will be particularly bummed if Nordstrom, Ann Taylor and J.Crew shutter. Nordstrom because it always has lots of options and great customer service, Ann Taylor because they have great petite selection (even though they are not my favorite, they are reliable), and J.Crew because they still offer some things I love, despite their quality fluctuations.
anon
Hmm. I have a $250 gift card to Nordstrom. I wonder if I should use it sooner than later. I haven’t seen any clothes I’m particularly pining for, but I could buy some makeup, jewelry, and shoes.
Monday
They have a lot of skin care products too.
pugsnbourbon
Stock up on housewarming/hosting gifts?
LaurenB
I feel like this is kind of a “duh” – Walmart, Target, and Costco sell food and household necessities, so of course they were allowed to stay open, and the other retailers don’t, so of course they needed to close.
Monday
The planned purchase of Victoria’s Secret is now possibly falling through as well. Buyer Sycamore Partners says it’s due to some of VS’ decisions in response to Covid 19. Unclear where that may lead.
Anonymous
i heard this was epstein/lex wexner related dramz.
Anonymous
The analysis I’ve seen in the news makes it sound as if Nordstrom is better positioned than other retailers to weather the crisis. The chains that are worst off are those that were already on precarious footing because the quality of their merchandise and/or the shopping experience had been declining. Macy’s was already closing stores, and those that were left were a big disorganized pile of junk.
Cat
Preach on how terrible it is to shop at Macy’s. I only shop there off people’s wedding registries. There are always piles of sloppy merchandise, never a cashier to be found, things are put back haphazardly, yuck.
Pep
“Do you still go to malls to shop for clothes or anything else?” Malls in my state, and surrounding states, have been closed since mid-March.
I have placed a few online orders for casual WFH-type things, from places like Zulily, Gap, and Old Navy.
LaurenB
Is there any place in the country where malls are still open for shopping??
Kate
Sorry, I was speaking generally and meant, “In your normal life, do you still shop at malls?” I changed the wording to make it clear that I meant pre-pandemic — I see now that it was confusing!
Ellen
This is so unfair. Nordstrom’s just opened in Manhattan, and I love it. When will they reopen in Manhattan so that I can go buy my stuff for the summer and fall? This is all so riduculus. I love Nordstrom’s!
Lyssa
I just did a big shop from Ann Taylor yesterday, which was having a very good sale. Our local store closed a year or two ago, and I haven’t shopped there a bunch in the past, so fingers crossed. I hate shopping online and would definitely prefer to go to the mall and try things on, but I’m finding less and less that works for me there lately, so I’ve got to get used to it, pandemic or not.
Housecounsel
Wow. I didn’t know it was this bad for major retailers. I have placed some orders at Nordstrom and they’ve come quickly. They’re also doing curbside pickup at our local store.
Lisa
Well I had a Macy’s gift card to use up. I placed the order online and received the package on time last Thursday, but the items are incorrect. The invoice indicates that I received an item intended for a woman in Puerto Rico, while I’m in Las Vegas. Normally this would be no problem- I could return it to the store or call a customer service agent to resolve the issue. But now, there are no stores open and there are no customer service agents available! It’s not even that it would be a long hold time to speak with a phone agent, but rather that the prerecorded message says they are unable to connect with any agents! And the customer service email address gets auto-returned with a similar message. Even the chat function is disabled.
Bottom line: if you have a gift card or other kind of store credit, I’d use it ASAP with fingers crossed that you actually get what you order!
Anon
Does anyone else think most retailers will go online-only after this? I imagine most brands make most of their sales online, and storefronts come with huge costs like rent and employee wages.
I can see demand for physical stores and shopping malls never really rebounding, especially since it was clearly waning before this.
anon
I can see smaller “show room” type stores popping up and becoming the norm where you can’t actually buy stuff in person but you can go and try stuff on. With women’s sizing all over the map, I feel like this is something that I’d love. I don’t need to have a fully stocked backroom or even the ability to walk out with an item but I really don’t love ordering online and hoping something fits or buying 5 sizes knowing I’ll return 4.
Anonymous
Yikes, I would really miss Neiman Marcus and Bloomingdale’s. That said, to the extent any of this is due to private equity loading these companies up with debt, taking profits and their fees, and then dumping the company into bankruptcy, I think we have a bigger societal issue and need someone like Elizabeth Warren to come up with a proposed solution.
LawyerAnon
Of the ones listed here, JCrew and Nordstrom are the only ones I shop frequently. I used to shop Ann Taylor a lot, but the quality of the clothes has gone way down, so I wasn’t willing to pay AT prices for Walmart/Target quality.
I find I’m buying fewer items but going for better quality. I’m tired of ending up with stuff that pills on the first wear or that is 100% polyester. For work, Brooks Brothers seems to be consistently good and Talbots can also be good but quality there is more variable. For a splurge, I like MM LaFleur. For business casual and casual, I like Boden and I also have been buying more from Lands End and LL Bean than I used to.
I do miss shopping in person, though. I like to see clothes in person before buying, but so much of the good stuff is now online only.
Anonymous
All so so true.
H
Ditto on all of this!
Seventh Sister
I’ll be sad if Neiman Marcus actually liquidates, it’s such a fun luxury department store. That said, I’ve bought a lot more at Nordstrom of late, mostly clothes for work. I rarely buy anything at Macys if I can help it – the shipping from online is SO slow, and the in-store experience is so crappy. Piles of junk everywhere, those stupid coupons that don’t apply to 80% of the merchandise, having to hunt down a sales associate, and kind-of-skimpy kids/teen clothes (if I want my 12yo to go about half-naked I’ll just cut off her shirts and pants myself).
SF Native
I think it’s more than 50-50 chance that big department stores don’t survive this and I am super sad about it. As someone who works at a business formal firm, I find that Saks and Bloomingdales are some of the few places with bigger collections of suits and blazers. I am going to be super sad if the stores close. I mainly shop online, but when I am in New York nothing compares to spending time in Saks Fifth Avenue flagship.
Anon
Couldn’t they close most stores but keep a handful of flagship stores open? Those are kind of tourist destinations already, and will be even more so if most stores close.
Deirdre
I do love Nordstrom’s. I do love JC Penney’s
Ann Taylor just always left me cold. Macy’s just rarely makes me happy except for cosmetics and jewelry. I do love to shop and would miss the mall. I guess the changes are coming and retail will not be a fun hobby any more.