RETAIL: Local groceries and other mom-and-
pop shops have become a lifeline for millions
of people ordered by states or cities to shelter
at home. Major retailers are another, and the
impact of the virus has reordered priorities.
Target has been aggressively remodeling
and opening new stores as competition from
Amazon.com grows increasingly intense. On
Wednesday, it significantly rolled back those
plans. Target said it will remodel 130 stores this
year, less than half of 300 it has planned. It will
open only 15 to 20 smaller format stores this
year, down from the 36 it had hoped to. It will
also push back plans to incorporate fresh food
and alcohol in its online pickup service.
The Minneapolis company warned Wednesday
that it is absorbing rising costs, including higher
pay for workers. Target expects an additional
$300 million in costs this quarter from a $
bump in hourly pay, and increased investments
in online operations. The company withdrew
its annual and quarterly financial guidance and
suspended its share repurchase program to raise
much-needed cash.
Fast food chains are offering another lifeline, but
at a cost. The owner of Pizza Hut, KFC and Taco
Bell said in a regulatory filing that 7,000 of its
restaurants worldwide are closed, including over
1,000 Pizza Hut Express locations in the U.S. and
over 900 KFCs in the U.K.