Apple Closes Stores On Reports Of An Increase In COVID-19 Cases

If there’s one retailer who has taken the COVID-19 social distancing measures to heart, it’s Apple
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. On London’s Regent Street on the first day of reopening they were taking people’s temperatures and insisted on the wearing of a face covering while in the store.

At London’s Westfield shopping center later last week, the Apple store had three queues outside, one for people who hadn’t made an appointment, one for those who had and one for those with a device requiring fixing.

So it perhaps came as no surprise to hear that in the U.S. they have announced that eleven of their stores originally reopened weeks ago will now be closing down again following spikes in reported COVID-19 cases across a number of states.

In Arizona where 3,246 new cases were reported last Friday, Apple said it would close six of its stores and in Florida, they are closing two of their stores. And in North and South Carolina, which have also seen dramatic increases in new cases, another three stores are being closed.

“We take this step with an abundance of caution as we closely monitor the situation and we look forward to having our teams and customers back as soon as possible,” Apple said.

The news sent U.S. stocks lower, as investors feared that Apple’s caution could precipitate wider nervousness among businesses about whether it is safe to begin reopening the U.S. economy. Apple shares dropped 1.4% on the news.

Wedbush analyst Dan Ives said, “Apple is a key barometer, globally,” he said. “For [chief executive Tim] Cook to close stores after reopening just a month ago, it’s a headline gut punch to the reopening bulls.”

And although Apple have displayed the most circumspection of virtually all the retailers who have reopened, it is that element of being a global barometer which is the most significant aspect of closing their stores where cases have spiked.

Because it reflects a real apprehension which is felt around the world towards the COVID-19 coronavirus. And that does nothing for consumer confidence, which in normal times is vital for any retail business, but in these unprecedented times, it provides the very means by which retailers can possibly hope to survive.

According to figures released today consumer confidence across Europe did rise in June when compared to May but only marginally, reflecting the fact that it will be a slow and painful process to return to anything like normality.

And if replicated across its global store estate, Apple’s ultra cautious approach could signal a reversing of this trend as economies and retail in particular slowly begin the long road to recovery.

It’s a precarious scenario laced with uncertainty. And if there is one thing that retailers don’t like, it’s uncertainty.