No More Browsing — Mall Shoppers Now Get In, Get Out, CEO Says

(Bloomberg) -- Shoppers aren’t behaving as they were before the coronavirus pandemic. As some states begin to allow mall reopenings, retailers say they’re now seeing less browsing and more intentional purchasing.

“For those that are shopping, I think they definitely have a purpose of coming in to buy something specific,” Fran Horowitz, chief executive officer of Abercrombie & Fitch Co., said in an interview.

Consumer behavior in the U.S. was upended in mid-March when the Covid-19 outbreak led to mass retail shutdowns. People spurned purchases of apparel in favor of essential goods like groceries. For those who did decide to spend on clothes, their options were largely limited to e-commerce.

This played out in Abercrombie’s quarterly results. Global digital sales rose about 25% year-over-year, the company said. Overall, net sales for the first quarter fell 34% across the Abercrombie brands, which includes Hollister. The company’s shares fell as much as 10% in New York Thursday.

Part of the business challenge the chain faces is making customers feel comfortable in its stores. American shoppers have expressed reticence over going back into malls compared with other shopping centers. Nearly 60% of consumers said they are moderately or very concerned about shopping in-store, according to a survey from Sensormatic Solutions. For those who do enter brick-and-mortar locations, more than a third say they do so just once a week, the survey found.

Mall property owners like Simon Property Group Inc. and retailers have invested in safety equipment and implemented social distancing measures to help assure customers that it’s safe to come back.

Malls have added signage reminding consumers to keep at least six feet apart. Department stores have closed fitting rooms and have no-touch beauty counters. Inside Abercrombie stores, associates are wearing masks and monitoring the number of customers in the store at one time, Horowitz said.

The efforts appear to be paying off: Foot traffic is ticking up as stores reopen. Abercrombie said that its reopened stores are at about 80% of normal sales productivity.

“There’s also those that are beginning to walk the mall and are starting to feel more comfortable,” Horowitz said.

©2020 Bloomberg L.P.