Retailers in New York City could be the next to demand COVID-19 vaccines for customers and workers.
New York Mayor Bill de Blasio demanded proof of COVID-19 vaccinations from employees and customers of indoor restaurants, gyms and entertainment centers on Tuesday, a day after mandating vaccinations for all new hires from the city.
Now the new order, which goes into effect on August 16, forces traders in the city to hurry up to determine if they need to react in one way or another and if they will, too, at some point. , forced to require proof of vaccination from customers and employees. . Amid growing fears of the Delta variant, retailers are required to step up e-commerce and online marketing efforts, step up social distancing and buy online, reclaim in-store services and double down. disinfection of stores.
Even without any additional requirements placed on retailers, the increase in cases of the Delta strain could discourage shoppers from visiting stores and malls, and dampen the outlook for a back-to-school and retail holiday. The country’s labor shortage and bottlenecks at ports could also hurt retail in the weeks and months to come.
“Right now, we’re reviewing the new guidelines to see how they impact our approach,” said a spokesperson for Nordstrom, which operates a flagship women’s and men’s store on Broadway and 57th Street in Manhattan, as well. that Rack off. -Price and Nordstrom Local Service Centers around town.
Macy’s has not commented on the New York City warrants in particular, but a spokesperson said as of Wednesday [Aug. 4], Macy’s Inc. will require masks for all colleagues in high-risk (red) and substantial-risk (orange) states as defined by the Center for Disease Control and Prevention or as mandated by local ordinances. “For our customers, our current policy remains unchanged,” said the spokesperson. “Masks are recommended for customers vaccinated in our stores, except where state or local mandates require it. Masks are mandatory for unvaccinated customers in all stores. “
The mayor did not impose any COVID-19 orders on retailers or malls, indicating in his press conference Tuesday morning that the city is “very intentionally focused on places people go for fun that weren’t the most essential services and where we think there is a particular need because people are nearby, eat, drink, exercise, whatever. It’s a very, very important place to make that change. “
He said, however, that the city “will now be looking at other areas as well, other types of businesses and absolutely consider whether it makes sense to do something similar, but this was the right place to start, and a place where I think we’re going to have a particularly profound impact.
S&P Global Ratings released a report on Tuesday indicating that the increase in cases of the COVID-19 Delta variant in many parts of the United States and the Centers for Disease Control’s new mask guidelines, even for those vaccinated, means that retail and restaurants are in another potential round of social distancing mandates that could hamper the push to fully reopen.
However, S&P tempered its outlook, saying the impact of a virus resurgence would be “pale compared to 2020 and an economic recession is still unlikely.” Instead, we believe retail businesses and restaurants would remain open with regional pockets of capacity limitations. We believe the fear of the virus and the reinstatement of social distancing warrants would likely have varying impact across the industry, but remain largely manageable for multiple reasons. These include:
• Consumers are unlikely to easily give up their rediscovered out-of-home activities. “They may reluctantly limit extraordinary experiences like travel or special events and restrict some in-person interactions, but we believe they will continue to engage in activities where they can still practice social distancing, including shopping. and restaurants patronize. ”
• Consumers have learned to shop safely, and retail businesses and restaurants have learned to operate while protecting the safety of customers. Consumers wary of in-person purchases would likely revert to the digital channels they have been successful with in 2020. E-commerce as a percentage of total retail sales in the United States has soared to 16% during the pandemic, from around 11% before the pandemic.
• Monthly retail figures from the US Census Bureau paint a picture of shoppers in the throes of shopping, not surprisingly given the $ 2.3 trillion in excess savings they’ve racked up from missed experiences during the pandemic and to government transfers.
While stating that most restaurants, retailers and consumer products companies continue to benefit from consumer spending, “the Delta variant could hurt the recovery prospects of some issuers, particularly what and how consumers buy. Issuers with a negative outlook may not be able to avoid downgrade, ”S&P said.
“In New York, where vaccination warrants are now imposed on some private businesses such as restaurants and gyms, I wouldn’t be surprised if large retailers such as Macy’s and Nordstrom did as well, although they would prefer the” coverage of “a term as mayor,” said Greg Sterling, vice president of Insights at Uberall, a software provider helping businesses improve their online operations and connections with consumers.
“Such a rule might alienate some customers, but most would likely welcome it to a predominantly pro-vaccine city,” Sterling told WWD. “And once the big retailers adopted a ‘vaccine passport’, competitors would feel compelled to do the same to show their commitment to the health and safety of customers.”
De Blasio said the warrant, known as the Key to NYC Pass, would encourage an increase in vaccinations to fight the spread of the Delta variant. All affected customers and workers can show their vaccination cards or upload their proof of vaccination on the Excelsior Pass app.
Over the past few weeks, the number of businesses requiring vaccinations has gradually increased. A few weeks ago, Radio City Music Hall began admitting guests and employees only if they were vaccinated, and on Monday Equinox said it would require all members, employees and visitors to its Equinox clubs and SoulCycle Studios in New York City be vaccinated by early September. . Disney has said it will require all salaried and non-union hourly workers in the United States to be fully vaccinated against COVID-19 by the end of September. Broadway theaters and other cultural venues will require employees and the public to be vaccinated.
New York Gov. Andrew Cuomo (who is under increasing pressure to resign due to state attorney general Leticia James’ investigation findings that he sexually harassed 11 women) has mandated vaccines for employees of the MTA and the State Port Authority, as well as for employees of public hospitals. Cuomo also encourages asking private businesses such as bars and restaurants to require proof of vaccination, but he did not specify retailers.
“Now that some of the largest employers are implementing flexible mandates that will require either vaccines or regular testing and masking, more companies can implement similar protocols to stay open safely and keep and attract talents, ”said Andrew Challenger, senior vice president of global outplacement. and executive coaching firm Challenger, Gray & Christmas Inc.
The National Restaurant Association and the New York City Hospitality Alliance released a statement expressing support for an increase in vaccinations but opposing the city’s mandate. “Checking immunization status is not like identifying a client before serving them a drink – staff are trained on how to do it,” said Larry Lynch, senior vice president of science and industry of the group, in the press release. “Now, without training, our staff members are supposed to check the immunization status of every customer wishing to eat inside the establishment.”
The New York City Hospitality Alliance also said the new measure would be a “difficult and controversial step,” but added that it could help prevent “further occupancy restrictions and closure orders that will once again devastate small businesses. companies and workers who have not yet recovered from the pandemic. “
S&P said in its report: “With the increase in consumer mobility and out-of-home activity has come a need to refresh wardrobes. With a resurgence, activities such as dining out and traveling could slow down, which in turn could reverse the upward trajectory of clothing (especially in non-casual segments such as work wear) and accessories. For example, Cole Haan faced disproportionate declines during the pandemic given his concentration in workwear and accessories. We downgraded the company a notch to B- due to weak demand and uncertain timing of recovery.
“On the flip side, spending on home improvement, furniture and durable goods like appliances – categories we expected to drop from pandemic highs – could benefit from a longer tail.” if consumers return to life in confinement. We expect the pandemic transition to outdoor activities to remain persistent given health and wellness trends and its safety attributes. Apparel companies such as Nike, VF, and Under Armor could gain a longer advantage regardless of the threat variants. Despite the recent return of consumers to restaurants, the grocery store has held up surprisingly well. We attribute this in part to the portion of time spent working from home, which will likely remain at a higher level than before the pandemic. If fears of the Delta variant push back plans to return to the office, we believe groceries, packaged foods, staples, and athletic and athletic wear are even more likely to stay at high levels.
–
