In September, shoppers' spending on clothes and cars had increased. Also, so has the amount spent at departmental stores. U.S retail spending has gone up by 1.9% compared to August which has given a boost of confidence even though signs have indicated a slowing down in economic recovery. All types of stores had an increase in spending with the exception of electronic stores. Clothing as well as departmental stores saw the biggest boost which is good for them because these stores have faced major financial losses during spring. Over the summer retail spending has improved so much to even surpass the pre-pandemic levels. However, there was a sense of worry in July/August as this growth had severely slowed down. This slowing-down has also affected job growth, and women have abandoned jobs/ left the workforce. People are still relying on unemployment benefits. As holiday season approaches will shoppers continue this way and spend a lot like they always do or will the pandemic affect their budgets and net spending. The retail industry will be tested during these end of year sales and economists say that the amount spent will be divided between those badly affected during the pandemic and those who were well off during these times. Only time will tell what the retail industry is going to look like in the next few months.
https://www.npr.org/sections/coronavirus-live-updates/2020/10/16/919330560/shoppers-went-back-to-department-stores-in-september
3 comments:
Yes, I agree with what you have said. People are doing better. Since they have been doing better they have been spending their money on retail stores which are easier to purchase from. As we have seen, there has been a bit of economic improvement. We can see the increase in people since everything has started getting back to normal even though there has not been a great improvement in controlling the virus.
I agree that shopping has picked up again and has picked the economy up. I think that this is good, however, I think that a second wave of coronavirus is coming and that people are going to start bulk buying again and staying home. I think the second wave will also show a decline of shopping once again. People will shop online and order things for delivery.
I think that a big indicator will be if people receive another round of stimulus checks. I am sure that this would help the retail sector immensely.
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