Georgia gives retail a glimpse of what reopening the economy will look like

Retailers are closely watching the consumer reaction in Georgia, as it is among the first states to begin a phased reopening of its economy.

Salons, gyms and tattoo parlors were given permission to reopen Friday, with movie theaters and restaurants permitted to open Monday. While health officials and governments are closely monitoring developments in areas that are reopening, so are retailers.

The country’s nonessential store retail sector has been closed a month or more for the first time in history. It is impossible to know how consumers will react to a new normal, if they come back to shop, and how habits might have changed.

Nonessential retail locations have not yet been given the go-ahead to reopen in the Peach state, and when authorities lift closures, it remains to be seen which retailers will choose to immediately reopen. 

Simon Property Group, the largest U.S. mall owner, is preparing to reopen 49 malls and outlet centers between May 1 and May 4, according to an internal memo obtained by CNBC.  The sites include Lenox Square in Atlanta and Calhoun Outlet Marketplace in Calhoun, Georgia. 

Retailers Citi Trends and Cato Corp. have a higher concentration of their total store footprint in Georgia than many other publicly traded retailers, according to data provided by Thasos. Eleven percent of Citi Trends 570 stores are in Georgia. Cato, which owns It’s Fashion, Cato Fashions and Versona stores, has nearly 9% of 1,300 total locations in Georgia.

Many other retailers have around 4% of total store locations in Georgia, including Children’s Place, American Eagle Outfitters, Chico’s FAS and the stores under Ascena Retail Group, including its Ann Taylor and Justice brands.

Abercrombie & Fitch, Ralph Lauren, L Brands‘ Bath & Body Works and Victoria’s Secret, along with Gap Inc.’s stores, which include Old Navy and Banana Republic as well as the Gap banner, have around 3% of total U.S. stores in the state.

Will shoppers return?

But it’s unclear if retailers with a larger footprint in areas that reopen will see a disproportionate sales resurgence.

Surveys suggest Americans may be reluctant to head to public places, even as authorities allow doors to open to once again serve the public. Including Georgia, nearly a dozen states have announced rolling back some coronavirus restrictions including Alaska, Colorado, Minnesota, Mississippi, Montana, Oklahoma, South Carolina, Tennessee, Texas, and Vermont. But what those each state allows and the timing of the rollbacks varies widely. 

A survey conducted by Coresight showed that more than two-thirds plan to avoid some kind of public place or plan to change travel plans after lockdowns end.

By specific location, shopping centers and malls were the top place consumers plan to avoid at more 45%. Consumers showed a bit more willingness to come back to shops, with just 28% planning to steer clear in Coresight’s survey.

In a separate survey, shoppers expressed various levels of fearfulness about physical locations, with just 33% telling First Insight they feel safe going to a mall, and though over half said they feel safe in a grocery store. However, there was a clear gender divide, with women more fearful than man about all formats. This is an issue as women largely do most of the shopping in the U.S. Under a quarter of women said they felt comfortable shopping in a mall compared to 41% of men.

Movie theaters is third at just under 44%. More than a third plan to stay away from dining-in at restaurants, bars and coffee shops, just under third aren’t interested in coming back to gyms.

There’s less reluctance to avoid salons and barber shops. Possibly, desperation to maintain one’s appearance may be prompting consumers to be willing to take a risk. Just 18% said they will continue to avoid grooming locations, according to Coresight.