It is no secret that the retail industry has been thrown for a loop. E-commerce has picked up substantially in the time of COVID-19, and after a number of retailers closed at the early outset of the virus, online shopping became the only option to find goods in some cases. There are serious questions about the long-term changes coming to retail. Below are a few observations on the retail market nationally, as well as in and around Boston.
- E-commerce sales increased 31.8% in the second quarter from the prior quarter, per the U.S. Department of Commerce, driving 16.1% of total sales.
- Lord & Taylor is closing its remaining stores, including its Back Bay location at the Prudential Center.
- As noted in a previous post, Simon Property Group is in negotiations with Amazon to take vacant or soon-to-be-vacant boxes from Sears and JCPenney.
- Simon’s current stock yield is 7.45% as of August 31.
- With most office workers remaining remote in the city of Boston, many lunch spots are closed, and it’s hard to find a place to eat.
- Meanwhile, at Assembly Row in Somerville, it’s hard to find a place to park. A recent shopping trip for one of our employees turned into a 5–10-minute search for a parking spot.
- Another employee spent 20 minutes searching for parking in the Seaport recently. Another echoed that same experience the week prior.
- AMC opened many of its theaters on Thursday, and its CEO announced most sold out. The limited number of seats cost 15 cents each.
- Tax-free weekend resulted in some heavy traffic (standstills) on Route 24 approaching IKEA and Jordan’s Furniture.
- With college students back, Harvard Square was hopping again.