This is a developing story and will be updated periodically as new information becomes available.
The emergence of a new variant of Covid-19 sent ripples through stock markets on Friday on what could have been a triumphant return to Black Friday shopping for retailers.
The market slump is the worst Black Friday drawdown on record, The Wall Street Journal reported. If the effects of the variant prove to be lasting, they could deal a major blow to REITs and other commercial real estate operators hoping that the world was finally reaching the post-pandemic phase.
When the Delta variant first reared its head in early 2021, property managers considered the strain little more than the latest twist in the winding path out of the coronavirus pandemic. But the variant led to significant delays in return-to-office plans for commercial tenants — and office demand likely saw a Delta-fueled pullback this fall.
The World Health Organization said Friday that, B.1.1.529, newly dubbed “omicron,” is a variant of concern, although scientists have not determined whether it is in fact more transmissible or dangerous than previously seen versions of the Covid-19 virus. The United States, European Union, and several other countries, have already begun to limit travel from South Africa, Botswana, Zimbabwe, Namibia, Lesotho, Eswatini, Mozambique and Malawai on fears that the variant emerged there.
Whether Omicron’s effects prove as damaging as Delta remains to be seen. Below, Bisnow has brought together an early look at how the variant complicated the holiday weekend:
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Despite the turbulent market, early data seems to show strong sales and a slight return to in-person shopping. Data from MasterCard SpendingPulse showed retail sales up 12.1% over 2020 by 10 a.m. ET, CNBC reported. In-store sales were up 39.8% over 2020 totals as of mid-morning on Friday on the East Coast, Financial Times reported.
- Consumers were on track to spend between $8.8B and $9.6B online on Friday, positioning e-commerce sales to potentially exceed…
Read More: Emerging Coronavirus Variant Sows Uncertainty, Sinks Markets On Black