Weekly News Wrap: American department stores in their ‘last' stages; US convenience stores pivot to e-selling

And women’s retailer J. Jill has days to avoid bankruptcy.

From CNBC:

The coronavirus pandemic is shining a light on U.S. department stores’ dependence on selling fashion and their delay in adapting to today’s retail environment.

Not only are a number filing for bankruptcy, but some, including the oldest in the nation, are liquidating entirely.

Apparel sales are in a free fall, dropping roughly 20% year over year in July, after suffering a 25% decline in June, according to the latest data from the Commerce Department.

Clothing has been one of the hardest-hit categories in retail during the pandemic, with fewer people concerned about refreshing their wardrobes when they hardly ever venture to public places. And some simply aren’t able to spend on a new outfit like they used to, as millions of Americans are unemployed due to the crisis.

From Bloomberg:

USA’s 152,000 convenience stores survived—even thrived—during the Amazon era by being the quickest way to buy things like ice cream and cigarettes. They mostly ignored the web because they could, thanks to their ubiquitous presence on urban street corners and suburban roadways.

The coronavirus is quickly challenging that business model. Since the pandemic hit the U.S. in March, drastically reducing in-store shopping, big players like 7-Eleven, Circle K, and Casey’s General Stores have accelerated the rollout of delivery from thousands of locations via third-party platforms such as DoorDash, Postmates, and Uber Eats.

From Bloomberg:

J. Jill Inc. has just 10 days to get permission from the vast majority of its lenders for a deal that would extend the struggling retailer’s debt maturities, excuse it from financial covenants and give it fresh cash.

The company said in a statement Tuesday that it plans to file for bankruptcy if it fails to get lenders holding 95% of its term loans on board with the plan by Sept. 11.

It’s struck a deal with lenders holding 70% of the debt to extend certain debt maturities to 2024, grant a financial covenant holiday and provide for at least $15m of new cash in the form of a junior term loan.