Few department stores are likely to survive following the coronavirus pandemic, according to retail experts at Columbia University’s Business School. New Orleans consultant of real estate valuations Wade Ragas says department stores have already had a tough enough time keeping up with e-commerce in recent years.
“We lose someone about every year who is a large, nationally well-regarded retailer. The idea that Macy’s is on the ropes I think is very disturbing, just because of the longest history of Macy’s with this country,” said Ragas.
Ragas says social distancing potentially creates overwhelming hurdles for the current business model of department stores.
“These are all new design problems where you have a lot of space that you have built and you are paying cost on and rent and utilities, but you don’t have a way to actually have a way to get the large sized crowds into the store,” said Ragas.
Ragas says even if the brick and mortar stores begin to disappear, it is possible to shift familiar brands into the e-commerce space. As far as which shopping brands have done the best in the pandemic…
“The two big winners so far have been Walmart along with Amazon, then kind of in a number three position with all of this, Costco,” said Ragas.