New York City faces business exodus, officials unclear as to full extent of losses: report
August 15, 2020
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Retail chains and restaurants have abandoned an “unsustainable” New York City over the past few months due to the coronavirus pandemic, according to a report by The New York Times – but officials say thet will not know the full extent of losses until the fall.
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New York Gov. Andrew Cuomo pushed to reduce the geographic footprint of travelers as a major centerpiece of his pandemic containment policy, limiting travel within the tri-state area so that New Yorkers were discouraged from traveling even to neighboring states. Cuomo’s policy, in combination with a statewide lockdown, managed to flatten the curve when New York City was the national hot spot of the virus in the United States.
However, the reduction in foot traffic from a lack of tourism and increased telecommuting has produced a market environment that cannot sustain the same level of revenue for businesses of seemingly any size. More than 420 companies — including Hertz, Lord & Taylor, J Crew and more — have already filed for bankruptcy protection in 2020, with more to follow as things stand.
JULY RETAIL SALES SLIGHTLY LOWER THAN EXPECTED
Due to pandemic containment policies, some businesses have seen as much as an 85% reduction in revenue, according to The New York Times. The Bryant Park Grill & Cafe has been forced to reduce from a 1,000-seat indoor capacity to only patio service, dropping revenue to around $12,000 a day – a fraction of its regular business.