Omicron Surge Creates Stumbling Block for Retail’s Foot Traffic Recovery

In a case of two or three steps forward and one step back, the surge of the Omicron variant has impeded the recovery of brick-and-mortar retail. Prior to the latest surge, foot traffic was returning to both shopping centers and downtowns, and brands were planning “ambitious new store openings across the country,” Danny Parisi wrote in Glossy earlier this week. 

More recently, though, stores have either closed or cut back hours. Those that have stayed open may be seeing sparse foot traffic. And some of those brands have begun rethinking their expansion plans. 

Macy’s announced that all stores will only be open from 11 a.m. to 8 p.m. Monday through Thursday for the remainder of January, with store hours unchanged the rest of the week, Retail Dive reported.  

Store employees will work “their normal allocated hours,” a Macy’s spokesperson said, adding that stores will encourage CDC-recommended protocols like mask wearing and social distancing. “The health and safety of our customers and colleagues remain our top priority.” 

Walmart is taking a more geographically specific approach, temporarily closing Walmart and Sam’s Club stores for cleaning, as it has done “since shortly after the pandemic’s beginning in 2020,” a spokesperson told Retail Dive. 

“This is a proactive measure, based on market-specific data, and is intended to present a safe in-store environment for our associates and customers,” the spokesperson said. 

The temporary closures typically last a day and a half and the program will remain in place for as long as it’s needed, the spokesperson said. “As for any outbreaks, our facilities tend to reflect the communities we serve. Therefore, a rise in positive cases among associates would likely be consistent with any rise in case counts within the surrounding communities.” 

Public Rec, an athletic wear company, has kept its two stores in New York and Chicago open throughout the Omicron surge. However, founder and CEO Zach Goldstein told Glossy that the impact of the variant has made him rethink plans to open future retail stores. 

“Omicron has definitely had an impact on how we are thinking about stores,” Goldstein said. “For our stores currently open, we’ve seen less of an impact in Chicago and more of one in New York City. However, as we assess new locations for 2022, we’ve started to think more seriously about selecting retail locations that may be less affected by what feels like the never-ending ebb and flow of COVID-19. Namely, [that includes] locations that have had foot traffic during last six months as case counts have fluctuated [like Chicago].” 

Andrew Hunter, co-founder of job search platform Adzuna, told Glossy, “The Omicron variant is undoubtedly dampening the progress that physical retail has made, which is illustrated by [our] data showing that retail job ads fell 26% in one week [in mid-December], during a time where retail job demand usually skyrockets.” 

Yet, the impact may be short-lived. “The COVID-19 omicron variant will bring uncertainty to the economy in 2022 and could contribute to inflation, but is unlikely to cause widespread shutdowns or slowdowns,” according to a new report from National Retail Federation chief economist Jack Kleinhenz.