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Retailers and Restaurants Leery of Reopening Even When Allowed

By Rich Duprey - Apr 27, 2020 at 9:36AM

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Many national chains want to go slow when it comes to reviving their business.

Although some states are beginning to allow businesses to reopen following the coronavirus lockdown, numerous retailers and restaurants are opting to remain closed.

Even as Georgia, South Carolina, and Tennessee ease up on store restrictions, allowing businesses to reopen within social distancing parameters, national chains such as Best Buy (BBY 0.20%), Gap (GPS -1.72%), Macy's (M -0.54%), and Starbucks (SBUX 0.23%) are forgoing the opportunity.

Woman hanging a "closed" sign in a store window.

Image source: Getty Images.

The CEO of restaurant chain TGI Fridays, Ray Blanchette, told The Wall Street Journal, "We don't want to be on the leading edge here."

Gap is also taking a circumspect approach, telling The New York Times, "We are closely monitoring the situation and will open our stores when we feel it is safe to do."

Eager to open

Other businesses are leaping at the chance to get their employees back to work. One unsurprising reopening is GameStop (GME -6.39%), which resisted closing its doors at the outset, arguing it was an essential business, and only acquiesced when it received significant backlash for remaining open. Now, it is reopening stores as states allow, and will be opening up overseas as well, including in Austria, Germany, and Italy.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool has a disclosure policy.

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Stocks Mentioned

The Gap, Inc. Stock Quote
The Gap, Inc.
GPS
$10.87 (-1.72%) $0.19
Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
BBY
$82.42 (0.20%) $0.16
Starbucks Corporation Stock Quote
Starbucks Corporation
SBUX
$88.55 (0.23%) $0.20
Macy's, Inc. Stock Quote
Macy's, Inc.
M
$20.32 (-0.54%) $0.11
GameStop Corp. Stock Quote
GameStop Corp.
GME
$37.93 (-6.39%) $-2.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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