Page 17 - HOH

BUSINESS Friday 6 March 2020
A25

Spreading virus could deal big blow to malls

By ANNE D'INNOCENZIO Prevention. chains have reported big
AP Retail Writer Shopping centers may crowds of customers stock-
NEW YORK (AP) — The have to take more extreme ing up on basics like hand
growing fear over a new precautions, such as tem- sanitizers and canned
virus has transformed busy porary closures, said Coye goods. But shoppers could
streets and shopping cen- Nokes, a partner at OC&C yet get scared and stay
ters into ghost towns in parts Strategy Consultants' con- home. A new survey by Co-
of China, Japan and Italy. sumer and retail practice. resight Research, a global
Now, with the virus spread- "While the brands and re- research firm, hints at trou-
ing in the U.S., it could deal tailers can attempt to miti- bles ahead for shopping
a major blow to the coun- gate the impact via other malls as the virus spreads.
try's over 1,000 malls at time channels like e-commerce, Almost 28% of nearly 2,000
when many are already malls themselves will strug- U.S. internet users aged 18
struggling with a slew of gle with traffic under any and older surveyed in late
retail bankruptcies. New extended virus scenario," February by Coresight Re- In this Friday, Feb. 28, 2020 file photo, a woman wearing a face
diagnoses of the disease she said. search said they were cut- mask and gloves rides an escalator at a mostly empty shopping
in several U.S. states have The first casualty was North ting back on visits to malls, mall in Beijing.
raised the tally of cases to Star Mall in San Antonio, workplaces and entertain- Associated Press
more than 100. Nine peo- Texas, which closed for 24 ment venues or changing
ple have died, all in Wash- hours this week after local their travel arrangements. to change habits if the rate of 7.5%, according to
ington state. health officials notified it Nearly 60% said they're like- outbreak worsens, around Kevin Cody, senior consul-
Big malls like American that a patient who tested ly to take similar actions if three-quarters expect to tant at retail research firm
Dream and Mall of Amer- positive for the new virus the virus outbreak worsens. avoid shopping complex- CoStar Group.
ica and mall owner Taub- visited over the weekend. Among those who have es, making this the most- The new virus' impact on
man Centers Inc. say A spokeswoman at the already changed hab- avoided type of location. overall spending is un-
they're adding hand sani- mall's owner, Brookfield its, more than four in 10 The rising fear comes at a known. But if it persists be-
tizer stations, and they've Properties, said in an email say they're limiting visits to time when malls are deal- yond April it could be sig-
also stepped up disinfect- to The Associated Press that shopping centers and malls ing with a wide gap be- nificant. Craig Johnson,
ing high-touch areas like the mall has been cleaned or avoiding them entirely, tween top quality malls and president of consumer con-
doors and handrails. The several times using prod- and more than three in 10 low-end malls. While va- sultancy Customer Growth
International Council of ucts recommended by the avoid shops in general. A cancies at top malls have Partners, says in that sce-
Shopping Centers said its CDC and there is a ''low risk worsening of the outbreak remained exceptionally nario he'd cut his annual
members are following to the public." would hit malls dispropor- tight, at 2.2%, the bottom retail sales growth forecast
guidelines from the Cen- Target, Walmart and other tionately, the research sug- rung of malls are struggling by nearly half to 2.2% from
ters for Disease Control and discounters and pharmacy gests. Among those likely with an average vacancy 4.1%.q
Exxon to cut activity in Permian Basin as oil prices plummet

By CATHY BUSSEWITZ energy demand. der pressure due to signs of and we've got a very chal- Exxon expects $30 billion to
AP Business Writer The price of a barrel of oil a slowing economy in the lenging short-term margin $35 billion in capital expen-
NEW YORK (AP) — Exxon has fallen more than 25% U.S. and abroad. Energy environment which is now ditures this year, but it will
Mobil said Thursday it plans since the start of the year, demand dropped dramati- being compounded by the likely be toward the bot-
to reduce the number of and 8% in the last month, cally as flights to and from growing economic impact tom half of that range. The
oil rigs operating in an oil- with energy demand ex- China were halted and of the coronavirus that company had previously
rich region in the South- pected to shrink as the out- factories slowed produc- we're seeing around the expected to be in the top
west and may cut planned break drags on the global tion. world," CEO Darren Woods half of that range, Woods
capital expenditures as the economy. Exxon will reduce the num- said Thursday at the New said. q
spreading coronavirus saps Oil prices were already un- ber of rigs in the Permian York Stock Exchange. "And
basin, a region that stretch- that is creating a lot of un-
es across the border of New certainty, particularly in the
Mexico and Texas. near term, and I would say
"We all know today, over- particularly here in Wall
supply, driven by indus- Street. However, the longer
try investments in some term horizon is clear, and
of these growth markets, today our focus is on that
have exceeded demand, horizon, and the future."