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| Auction Houses Postpone Live Sales and Pivot to Online | Auction Houses Postpone Live Sales and Pivot to Online |
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| Francis Bacon’s 1981 three-part oil painting, “Triptych Inspired by the Oresteia of Aeschylus,” was supposed to feature in Sotheby’s marquee contemporary art evening auction in New York on May 13, where it was estimated to sell for at least $60 million. | Francis Bacon’s 1981 three-part oil painting, “Triptych Inspired by the Oresteia of Aeschylus,” was supposed to feature in Sotheby’s marquee contemporary art evening auction in New York on May 13, where it was estimated to sell for at least $60 million. |
| That live auction clearly won’t be happening now, in light of the coronavirus. But Sotheby’s has yet to announce what it plans to do with its May sales instead: Hold them online? Postpone them till late June, as its competitors, Christie’s and Phillips have — assuming it’s possible for people to gather by then? Cancel till the world is less upside down? | That live auction clearly won’t be happening now, in light of the coronavirus. But Sotheby’s has yet to announce what it plans to do with its May sales instead: Hold them online? Postpone them till late June, as its competitors, Christie’s and Phillips have — assuming it’s possible for people to gather by then? Cancel till the world is less upside down? |
| Like companies all over the world, auction houses now find themselves in uncharted territory, trying to find a way to keep their businesses afloat even as the future of buying art looks as if it may be forever changed. | Like companies all over the world, auction houses now find themselves in uncharted territory, trying to find a way to keep their businesses afloat even as the future of buying art looks as if it may be forever changed. |
| With workers being furloughed and headquarters lying empty, some art professionals say the current necessary switch to online sales — also underway at galleries — could have a lasting impact on the live auction enterprise. | With workers being furloughed and headquarters lying empty, some art professionals say the current necessary switch to online sales — also underway at galleries — could have a lasting impact on the live auction enterprise. |
| “I’m thinking really seriously about what the online experience is for our clients,” said Amy Cappellazzo, chairwoman of the Fine Art division of Sotheby’s. “In effect, we’ve been in the live theater business. Now we’re segueing into what is more like live streaming. The truth is, that revolution has been underway for some time.” | “I’m thinking really seriously about what the online experience is for our clients,” said Amy Cappellazzo, chairwoman of the Fine Art division of Sotheby’s. “In effect, we’ve been in the live theater business. Now we’re segueing into what is more like live streaming. The truth is, that revolution has been underway for some time.” |
| Art market veterans agree that the pandemic has accelerated changes that were underway — an effort by auction houses to build up private and online sales; to reduce costly and cumbersome catalogs; and to develop younger, nontraditional customers. | Art market veterans agree that the pandemic has accelerated changes that were underway — an effort by auction houses to build up private and online sales; to reduce costly and cumbersome catalogs; and to develop younger, nontraditional customers. |
| “People who can change, adapt and innovate will be the ones best able to move forward,” said Clare McAndrew, an art economist who puts out the annual Art Basel and UBS Art Market Report. “The online segment could be a big winner here.” | “People who can change, adapt and innovate will be the ones best able to move forward,” said Clare McAndrew, an art economist who puts out the annual Art Basel and UBS Art Market Report. “The online segment could be a big winner here.” |
| Auction houses have been trying to adjust quickly, though the uncertain trajectory of the virus makes it difficult to solidify plans. The most immediate question is the spring auctions, which anchor the art market calendar, along with the fall sales in November; last May, the five-day series of sales at Sotheby’s, Christie’s and Phillips raised a combined $2 billion. | Auction houses have been trying to adjust quickly, though the uncertain trajectory of the virus makes it difficult to solidify plans. The most immediate question is the spring auctions, which anchor the art market calendar, along with the fall sales in November; last May, the five-day series of sales at Sotheby’s, Christie’s and Phillips raised a combined $2 billion. |
| Both Christie’s and Phillips have consolidated their New York Impressionist, Modern and contemporary art sales into one week of 20th-century auctions scheduled for the end of June that will also absorb the London June sales. The Hong Kong sales have been pushed to July, though that, too, may be wishful thinking. | Both Christie’s and Phillips have consolidated their New York Impressionist, Modern and contemporary art sales into one week of 20th-century auctions scheduled for the end of June that will also absorb the London June sales. The Hong Kong sales have been pushed to July, though that, too, may be wishful thinking. |
| Could the live auction ultimately become a relic of the past? Still unclear is whether people will be able to travel or gather for in-person auctions as soon as this summer — and, if not, whether auction houses would try to sell those big-ticket works of art in an online auction, where the prices are usually lower. | Could the live auction ultimately become a relic of the past? Still unclear is whether people will be able to travel or gather for in-person auctions as soon as this summer — and, if not, whether auction houses would try to sell those big-ticket works of art in an online auction, where the prices are usually lower. |
| “For certain higher-priced objects, the jury is still very much out on whether an online-only sale without opportunity for proper viewing can truly maximize value,” said Edward Dolman, the chairman and chief executive of Phillips. “Once you get to a point where people see online sales maximizing or exceeding value, that would be the tipping point; that’s when you’ll see our business going broadly online.” | “For certain higher-priced objects, the jury is still very much out on whether an online-only sale without opportunity for proper viewing can truly maximize value,” said Edward Dolman, the chairman and chief executive of Phillips. “Once you get to a point where people see online sales maximizing or exceeding value, that would be the tipping point; that’s when you’ll see our business going broadly online.” |
| The pandemic also raises questions for auction houses’ costly overhead. If the auction world becomes more virtual, houses will have to re-evaluate their need for prime real estate. Phillips’ new Park Avenue headquarters, for example, was due to open in May, but construction has now been halted. | The pandemic also raises questions for auction houses’ costly overhead. If the auction world becomes more virtual, houses will have to re-evaluate their need for prime real estate. Phillips’ new Park Avenue headquarters, for example, was due to open in May, but construction has now been halted. |
| “This is the stimulus the art market needed to move online,” Ms. McAndrew said. “Buying online isn’t a collector’s No. 1 choice; it won’t replace the excitement and sense of community of an auction. But online sales will help relieve the cost pressures of live events.” | “This is the stimulus the art market needed to move online,” Ms. McAndrew said. “Buying online isn’t a collector’s No. 1 choice; it won’t replace the excitement and sense of community of an auction. But online sales will help relieve the cost pressures of live events.” |
| All of the auction houses have added online-only sales across several categories for April and May and are already seeing results. Phillips said its March 4 20th century and contemporary art auction had a record number of online participants, with bidders from 47 countries. And nearly half the lots from its April prints sale received bids in the first 24 hours. However, the most expensive item bought by an online bidder in March was a KAWS piece, which topped out at only $350,000. | All of the auction houses have added online-only sales across several categories for April and May and are already seeing results. Phillips said its March 4 20th century and contemporary art auction had a record number of online participants, with bidders from 47 countries. And nearly half the lots from its April prints sale received bids in the first 24 hours. However, the most expensive item bought by an online bidder in March was a KAWS piece, which topped out at only $350,000. |
| Sotheby’s 21 online sales since March 1 have totaled a healthy $40.1 million, which may reflect the fact that the auction house’s new owner is the telecommunications mogul Patrick Drahi. Up to 50 percent of the bidders in these sales have been entirely new to Sotheby’s, the auction house said, and 50 percent of all bids are being placed on mobile devices. | Sotheby’s 21 online sales since March 1 have totaled a healthy $40.1 million, which may reflect the fact that the auction house’s new owner is the telecommunications mogul Patrick Drahi. Up to 50 percent of the bidders in these sales have been entirely new to Sotheby’s, the auction house said, and 50 percent of all bids are being placed on mobile devices. |
| “The art market — after resisting for so long — has been forced to give digital a chance,” said Thierry Ehrmann, chief executive and founder of Artprice, an auction-result database in France. | “The art market — after resisting for so long — has been forced to give digital a chance,” said Thierry Ehrmann, chief executive and founder of Artprice, an auction-result database in France. |
| Even old school collectors seem to be getting more comfortable bidding online, because right now that is their only option. “I’ve seen a lot of clients I wouldn’t have expected interested in the technology,” Ms. Cappellazzo said. “Your palms are sweaty, you’re hoping it’s your bid — it’s a bit like a video game.” | Even old school collectors seem to be getting more comfortable bidding online, because right now that is their only option. “I’ve seen a lot of clients I wouldn’t have expected interested in the technology,” Ms. Cappellazzo said. “Your palms are sweaty, you’re hoping it’s your bid — it’s a bit like a video game.” |
| Christie’s has increased its online-only auctions in April and May from nine to more than 20 events, which are estimated to raise at least $20 million. | Christie’s has increased its online-only auctions in April and May from nine to more than 20 events, which are estimated to raise at least $20 million. |
| “This crisis is a moment of truth for online sales,” said Guillaume Cerutti, Christie’s chief executive. | “This crisis is a moment of truth for online sales,” said Guillaume Cerutti, Christie’s chief executive. |
| The transition to e-commerce is buoyed by an emerging class of wealthy millennials who are spending more than six times the amount of their parents’ generation and have few qualms about buying art online, according to the Art Market Report, which also indicated that 92 percent of this demographic have bought works through the web. | The transition to e-commerce is buoyed by an emerging class of wealthy millennials who are spending more than six times the amount of their parents’ generation and have few qualms about buying art online, according to the Art Market Report, which also indicated that 92 percent of this demographic have bought works through the web. |
| Others point out that seasoned collectors — especially those in distant parts of the world — already buy some artworks sight unseen, trusting the reputation of established auction houses, condition reports and their own connoisseurship. | Others point out that seasoned collectors — especially those in distant parts of the world — already buy some artworks sight unseen, trusting the reputation of established auction houses, condition reports and their own connoisseurship. |
| Whether those online sales can start including multimillion-dollar masterpieces is still unknown. Before the pandemic, the May sales were expected to be strong, given first-rate material like the Anderson collection of postwar American art at Sotheby’s, valued at $55 million, which includes pieces by Mark Rothko and Clyfford Still. The Macklowe Collection has postponed its decision about how that trophy material will be sold. | Whether those online sales can start including multimillion-dollar masterpieces is still unknown. Before the pandemic, the May sales were expected to be strong, given first-rate material like the Anderson collection of postwar American art at Sotheby’s, valued at $55 million, which includes pieces by Mark Rothko and Clyfford Still. The Macklowe Collection has postponed its decision about how that trophy material will be sold. |
| The idea that collectors will feel comfortable bidding tens of millions of dollars on an investment like the Bacon triptych — especially if they haven’t seen it in person — still seems unlikely. | The idea that collectors will feel comfortable bidding tens of millions of dollars on an investment like the Bacon triptych — especially if they haven’t seen it in person — still seems unlikely. |
| Updated June 5, 2020 | |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “I’m not an online fan," said Adam Lindemann, a prominent collector and dealer. “I want to see the real thing if I can.” | “I’m not an online fan," said Adam Lindemann, a prominent collector and dealer. “I want to see the real thing if I can.” |
| Sotheby’s was encouraged by the online sale of a rare photogram by László Moholy-Nagy for $524,000 and of Irma Stern’s oil on canvas “Grape Packer” for $531,309. Phillips is asking $1.5 to $2 million for David Hammons’s “African American Flag” in its new private sale viewing room, but such prices have yet to be tested in a public online auction forum. | Sotheby’s was encouraged by the online sale of a rare photogram by László Moholy-Nagy for $524,000 and of Irma Stern’s oil on canvas “Grape Packer” for $531,309. Phillips is asking $1.5 to $2 million for David Hammons’s “African American Flag” in its new private sale viewing room, but such prices have yet to be tested in a public online auction forum. |
| “I suspect, if this lasts six to nine months, people will become more relaxed about buying online at a higher level,” said Guy Jennings, managing director of the Fine Art Group, a London-based advisory company. | “I suspect, if this lasts six to nine months, people will become more relaxed about buying online at a higher level,” said Guy Jennings, managing director of the Fine Art Group, a London-based advisory company. |
| But auction houses have a huge amount of ground to make up with online sales, which in 2019 made up just 9 percent — about $5.9 billion — of the $64 billion in total art market sales (for smaller auction houses with sales under $1 million, that figure is larger — 23 percent). | But auction houses have a huge amount of ground to make up with online sales, which in 2019 made up just 9 percent — about $5.9 billion — of the $64 billion in total art market sales (for smaller auction houses with sales under $1 million, that figure is larger — 23 percent). |
| Many experts say online auctions can’t replicate the high drama of an auction room, nor replace the revenue required to sustain personnel-heavy operations like Sotheby’s, Christie’s and Phillips. | Many experts say online auctions can’t replicate the high drama of an auction room, nor replace the revenue required to sustain personnel-heavy operations like Sotheby’s, Christie’s and Phillips. |
| “The auction itself is high drama — gladiator sport,” said the dealer Brett Gorvy, a former Christie’s executive. “When we get back to a degree of normality, it will return.” | “The auction itself is high drama — gladiator sport,” said the dealer Brett Gorvy, a former Christie’s executive. “When we get back to a degree of normality, it will return.” |
| Mr. Gorvy also emphasized that sellers need auctions to gauge where the market is; sporadic private sales don’t provide enough information on whether prices have fallen as a result of the virus. | Mr. Gorvy also emphasized that sellers need auctions to gauge where the market is; sporadic private sales don’t provide enough information on whether prices have fallen as a result of the virus. |
| “There is nothing publicly to test the market — no fairs or auctions,” he said. “It’s holding up business. People don’t really know at what price to trade.” | “There is nothing publicly to test the market — no fairs or auctions,” he said. “It’s holding up business. People don’t really know at what price to trade.” |
| Postponing sales are not just a matter of pushing them back on the calendar. Consignments involve complicated contracts that stipulate not only the date on which an artwork will be sold but how it will be marketed, where it will appear in the catalog and other minutiae. | Postponing sales are not just a matter of pushing them back on the calendar. Consignments involve complicated contracts that stipulate not only the date on which an artwork will be sold but how it will be marketed, where it will appear in the catalog and other minutiae. |
| If the sales don’t happen as scheduled, sellers could decide to withdraw their consignments. Similarly, auction houses that have promised sellers a certain minimum price could pull out of those guarantees. | If the sales don’t happen as scheduled, sellers could decide to withdraw their consignments. Similarly, auction houses that have promised sellers a certain minimum price could pull out of those guarantees. |
| Auction houses are trying to balance the interests of waiting for the best time to obtain the highest prices and needing to sell soonest to keep the lights on. | Auction houses are trying to balance the interests of waiting for the best time to obtain the highest prices and needing to sell soonest to keep the lights on. |
| Even if auction houses can manage live sales by June, experts say, collectors may not be in the mood to conspicuously lay out large sums for art, when many have lost their loved ones and may still be worried about their own physical and financial well-being. | Even if auction houses can manage live sales by June, experts say, collectors may not be in the mood to conspicuously lay out large sums for art, when many have lost their loved ones and may still be worried about their own physical and financial well-being. |
| “This insane thing turned the world inside out — everyone is affected at some level,” said Mr. Lindemann, the collector. “We have to be careful to temper self-interest and think how we can help out. Promoting and chasing sales at this time just feels wrong.” | “This insane thing turned the world inside out — everyone is affected at some level,” said Mr. Lindemann, the collector. “We have to be careful to temper self-interest and think how we can help out. Promoting and chasing sales at this time just feels wrong.” |