It will be an understatement of the year to say that COVID-19 has changed a lot. This pandemic led to many businesses closing down which gave a huge boost to the unemployment ratio. But as the world slowly heals, things have started to get a bit better.
When the lockdown was imposed in 2020, the world witnessed the rise of eCommerce. And the fact that online businesses are still booming, one cannot help but wonder about the future of the retail industry. Is it at a crossroads? Well, it depends on the changing consumer sentiment and the government’s actions.
What’s the Immediate Future Will Be Like?
2020 isn’t really a year one would like to remember. But since it has been a year since the epidemic began, there is hope that things will continue to get better just the way it is improving right now. Along with the gradual recovery, you will also see a substantial increase in retail sales. And you will easily be able to compare it as around this time, the shops were closed. Now that the restrictions have been relaxed, you can expect people to go out and shop. This will help bring positive growth to the economy.
The government is doing its part and will be providing a relief package to the citizens. This will encourage people to start spending again on different items. Although, it is also true that some people will be investing this money into stocks or will save it for a rainy day. However, the bottom line for retail is that it will get better and the sales will increase!
The Future of Retail Industry: Fall & Beyond
The retail industry may have to go through a challenging time again in fall, 2021. You can expect the government to issue another relief package that might be focused on climate change. It will be a good idea if the state focuses on the infrastructure of the country at the same time as there are different tunnels, bridges, and roads that need to be fixed. Doing this will also create more jobs which will improve the unemployment rate.
There’s another good news for you as many different brands have announced to open new stores which will definitely help the economy make some progress. So far, approximately 3,188 store units are scheduled to be launched. It will include: Burlington will open 100 stores, Aldi will launch 100 stores, Ross Stores will introduce 60 stores, and Target plans to add 30-40 stores. This is an excellent development that will aid in eliminating unemployment to some extent and will surely increase the sales of retail.
However, there’s a strong chance of the taxes being increased. This will affect those individuals with higher incomes and big corporations. While it’s true that no one would like the taxes to increase but at the same time, it will actually benefit the country. How? Well, the government will be able to pay off the debt. It can then also work on the infrastructure issues. All in all, the retail industry might not be able to make strong progress during the fall as it will during the first two quarters of 2021. But it will still be in a better position as compared to last year.
What to Expect in 2022?
2022 will be a year with its own challenges. Considering how the country is still battling with a high unemployment rate, inflationary pressures, and no developmental projects, one could anticipate an economic recession or depression. However, no one knows what set of actions the government will take to improve the situation. It will definitely require people with power to ponder upon some really important issues that can contribute to the economic downturn.
The current condition of the economy has raised uncertainty in the United States. But it’s not just the U.S. that is tackling this issue. The same factors mentioned above are also affecting other countries like England, Italy, and Japan. China, however, has miraculously steered away from the global pandemic. This will quite possibly give one a sense of isolation in China that will hurt the outlook there and might as well affect the rest of the world as well.
This puts the U.S. at a crossroads. Sure, the opening of new stores is a good sign and how the government is looking after the citizens is great but there is no denying that the effects of the pandemic can still be felt. People will eventually go out and spend in retail stores but with extreme caution. E-commerce will continue to rule and tech will keep changing our needs and lives.
Conclusion
The Coronavirus has turned the world upside down. And the scary part is that the pandemic is still affecting the everyday lives of people. But there has been some improvement as well! It’s a new world ladies and gentlemen. And it will require some effort to manage the increasingly complicated marketplace to restore not just the economic stability but also growth for the retailers. Staffing agency has also now actively started looking for talents again! This is great news for both the individuals without a job and for the economy in general as it means that businesses have started to show progress.