In an eight-month horrific epidemic that sent thousands of stores into lockdown and others into bankruptcy, retailers both big and small are looking to President-Elect Joe Biden’s administration for relief.
According to Yelp estimates, more than 97,000 businesses have closed permanently during the epidemic as states and counties have issued public health orders to close storefronts to curb the rapidly growing virus.
Even well-capitalized retailers, such as Kohl’s, L Brands – which owns Victoria’s Secret and Bath & Body Works – and Calvin Klein and Tommy Hilfiger’s parent company, PVH, have had to cut staff and some stores. Has had to be permanently closed.
Now, even with two promising vaccine candidates on the horizon, retailers have attempted a slow crawl to get out of the epidemic as a new leader takes over the White House, in increasingly sinister relations with China Steps in and the domestic economy may fall deep into the economy. A recession.
“What we see from consumers and retailers over the next several months is going to depend to a great extent on how we get the virus under control – and efforts to get the virus under control are definitely in retail. “There will be a big impact on the performance of the vendors. Over the next several months,” said Paul Lejuez, managing director of Citi Legacy Global Markets. “We’ll keep our fingers crossed, but it looks like the next several months can definitely be tempering.”
Biden said in a speech on Monday, when he warned of an epidemic rising across the country again as a “dark winter”, adding that “things are getting very difficult before they get easier.” Biden has called on Congress to immediately pass an incentive bill – a measure that could boost consumer spending and help small businesses weather the epidemic until a vaccine is widely adopted is. Retail sales slowed in October as payroll profits plummeted and government stimulus payments faded.
“If small businesses receive no government intervention and incentive relief, many more won’t make it through the winter,” said Elliott Richardson, co-founder and president of the Illinois-based Small Business Advocates Council. “This will cause jobs to cost and businesses to fail.”
Coronovirus has widened the gap between Wall Street-funded deep-pocketed retailers and thousands of small-business owners on Main Street who have used personal savings to pay rent and keep their doors open.
Large retailers such as Amazon – whose share prices have risen nearly 100 percent since the epidemic began – target and Walmart, to a large extent, have benefited from consumers’ move to spend online as brick-and-mortar store viruses Have become potential sources of spread. But not all small businesses came into the epidemic with the resources to flip online stores in their markets, said Holly Wade, executive director of research for the National Federation of Independent Business, a small business trade association.
“For many small retailers, one of their big challenges is trying to shift operations or adjust to changes in consumer spending,” Wade said. “This is not a government challenge, but they have to deal with the health crisis.”
Lockdowns to prevent the spread of the virus, along with increased competition from online retail giants, have solidified small businesses and divided brick-and-mortar retailers equally. Wade said that about 20 percent of small businessmen say they cannot continue for more than six months. Corite Research, a retail and technology data firm, estimates that more than 25,000 stores may close by the end of the year due to coronavirus.
BurcoBerry CEO Marco Gobetti said last week, “Kovid-19 has caused many store closures, health and safety unsolicited situations and a complete disruption of how we go to market.” As a result of store closures and declining tourism, luxury retailer sales fell by minus-6 percent in the previous quarter – an improvement from the previous quarter, when sales came down to minus-45 percent.
To address the prevailing economy, President Donald Trump’s administration began through a $ 2 trillion stimulus bill, which included a $ 659 billion loan program for small businesses aimed at covering employee costs. But the so-called paycheck protection program was mired in controversies as celebrities, big corporations and Trump’s allies received thousands of dollars in financial support, while mom-and-pop shops – and especially those owned by people of color Businesses with – continued to suffer.
Both congressional parties refused to consider their stimulus proposals, leading JPMorgan Chase CEO Jamie Dimon to accuse the politicians of showing “childish behavior”. With no stimulus bill in sight, millions of Americans who depend on unemployment benefits are facing a financial cliff in December when additional pandemic aid is ending. Meanwhile, coronovirus case numbers are increasing across the country and deaths have increased by 42 percent, according to an NBC News analysis of available data.
The uncertainty surrounding the virus over the next few months also comes at a time of heightened political tension between Trump and the incoming administration. More than two dozen top CEOs of the country called an emergency meeting this month to discuss whether Trump refused to leave office or take other steps to remain in power.
While the holiday season traditionally brings huge sales volumes for retailers, many are facing a challenging season, with travel near a standstill, lockdown on the horizon and consumers’ wallets already very squeezed .
“Joanne C. Cravoserut, CEO of Tenestry Inc., which owns Koch and Kate Spade, the environment is uncertain later this month.” “We are focused on staying close to the consumer and controlling the controllers.”