- Only 24% of the businesses that were closed in April had reopened by July 10
- Permanent closures now account for 55% of all closures
- Of the 26,160 restaurants and bars that were closed in July, 15,770 plan to stay that way permanently
A Yelp analysis indicated Wednesday fewer businesses are closing temporarily as a result of the coronavirus pandemic, but permanent closures are growing. At the same time, data indicated the number of COVID-19 cases increased as consumer interest in restaurants, bars, nightlife and health clubs rose.
U.S. cases of coronavirus began surging as states lifted restrictions imposed in the early days of the coronavirus pandemic, especially in the South and West where instances initially were low in the spring and restrictions were lifted rapidly.
Yelp reported in April 175,000 businesses had closed because of pandemic lockdowns. As of July 10, that number fell to 132,000, indicating only 24% of those businesses had reopened. And although temporary closures are falling, permanent closures are growing, accounting for 55% of all closures since March 1.
Of the 26,160 closed restaurants and bars in July, 15,770 have closed permanently.
Among retail businesses, 29% of the 26,119 closures are permanent.
“How durable the improvement in retail spending will be is directly related to how widespread the resurgence in COVID-19 cases becomes,” NRF chief economist Jack Kleinhenz said in a press release. “All eyes are on the infections that are accelerating in many parts of the country and they pose a serious threat to recovery.”
Retail sales for June were up 7.5% compared to 18.2% in May, the Census Bureau reported. Restaurant and bar sales for June totaled $47.4 billion, $18 billion under prepandemic levels, the National Restaurant Association reported.
Yelp data indicated the 10 states with the largest increases in COVID-19 cases in June and significant increases in consumer interest in restaurants, bars and nightlife, and gyms were Florida, Idaho, Nevada, Oklahoma, South Carolina, Arizona, Texas, Georgia, Kansas and Alabama.
Massachusetts, Michigan, the District of Columbia, New York, Connecticut, Maryland, New Hampshire, Rhode Island, Virginia and Illinois not only had the largest decreases in COVID-19 cases but showed flat interest in restaurants, bars, nightlife and health clubs.
Yelp said there also has been a shift in consumer trends since May. Interest in alcohol-related activities is up while grocery interest is down. Formal wear and bridal shops also saw growing interest, as is axe throwing, escape games and boxing.
Additionally, there is growing consumer interest in urgent care and emergency rooms.
International Business Times