The United States had its worst retail performance in history
The international monetary fund forecast on April 14th that the US economy would contract by 5.9% in 2020. Meanwhile, our retail sector, seen as a bellwether for the economy, is heading for a dark moment.
Retail sales in the U.S. fell at a monthly rate of -8.7% in March, the biggest drop since records began in 1992, according to the latest data.
According to the bureau of labor statistics, more than 600,000 retail workers nationwide are on unpaid leave.
Coresight Research, us retail data analyst, also relentlessly points out that 15,000 us stores are expected to close permanently this year, a record high.
Us department store j.c. Penney has been forced to temporarily close 850 stores due to the outbreak of COVID 19. Penney is considering filing for bankruptcy protection, according to people familiar with the matter. It is reported that the well-known clothing and home furnishing retail giant in the United States has a history of 118 years.
“The U.S. economy is clearly in ruins,” said Chris Rupkey, a chief financial economist at MUFG union bank in New York. No one is buying a car — sales are down 25.6 percent, no one is buying furniture — sales are down 26.8 percent, restaurants are down 26.5 percent.”
I believe that with the outbreak under control in the United States, the retail industry will soon be back on track. It is only a matter of time.
Adidas has secured a 3 billion euro loan
On the 15th, Adidas announced that it had received 3 billion euros of credit from the German state-owned bank KFW to help it weather the financial crisis caused by the new outbreak.
Over the past four weeks, Adidas has temporarily closed almost all of its partner-operated stores in Europe, North and South America, Russia and most of Asia Pacific, where it said wholesale and retail physical activity, which typically accounts for 60 percent of its business, had ground to a halt.
After the postponement of major sporting events such as the European championship and the Olympic Games, commercial development was also unable to be carried out.
Casper roasted, chief executive of Adidas, said: “We thank the German government for its swift and comprehensive action in response to this unprecedented global crisis. Access to additional liquidity is key to getting through this crisis and we will repay the use of the loan as quickly as possible, including interest and fees.”
Didas’ executive board decided to stop buying back the company’s stock and forgo short-term and long-term bonuses for 2020, which accounted for 65 percent of annual compensation, as well as long-term bonuses for the next leadership.
“We are doing our utmost to protect the long-term well-being of Adidas, our 60,000 employees, and our partners, and we are implementing a number of measures,” Mr. Rostede said. These include establishing strict cost and working capital controls, reducing executive compensation, halting share repurchase programs and suspending dividends.”
Some market analysts believe that Adidas’ cash flow is not as bad as expected, the early release of the results is expected to give the outside world to see confidence.