Whether you work in hospitality or healthcare, finance or education, you've surely felt the effects either in your industry or in your personal life.
Overall, U.S. retail sales dropped by a record 16.4% from March to April as business shutdowns caused by the coronavirus shellacked stores big and small. Unfortunately, many were already in a precarious state pre-pandemic thanks to stiff competition from Amazon.
Nearly $1 of every $5 spent at retailers last month went to non-store retailers, signaling a definite shift toward online shopping.
With exception to online, not a single retail category was spared in April. Furniture stores and appliance/electronics stores absorbed whopping losses of 60% or more. Car dealers saw a plunge of 13%.
Even clothing retailers have been walloped.
Clothing-store sales sagged 79% and department stores 29%. In recent weeks,
J.Crew, Neiman Marcus, Stage Stores, and J.C. Penney have filed for bankruptcy protection. Other retailers are expected to follow suit.
There has been one bright spot: Sales of pajamas surged 143% between March and April, which clearly indicates the attire of choice for those working from home.
Such news goes hand-in-hand with the fact that sales of pants have fallen 13%, while sales of bras are down 12%. Comfy is the new cool, to be sure.
Restaurants, some of which are already starting to close permanently, witnessed a nearly 30% decline in spite of the move toward takeout and delivery orders.
After panic buying in March, grocery sales fell 13%. Still, that doesn't mean groceries have gotten any cheaper.
In fact, the average bill on a single grocery store trip has increased by $34 -- from $61 to $95 -- a 55% spike since pre-coronavirus times.
Prices at the grocery store also rose 2.6% last month — the biggest jump since 1974.
And if you've never been big on saving, chances are that's changed in recent months.
Because of layoffs, furloughs, and uncertainty over their jobs -- not to mention price increases/gouging -- consumers are doing everything in their power to cut spending and build a safety cushion.
The savings rate in the United States climbed to 13.1% in March from 8% in February, marking the highest savings rate since November 1981.
While several states have begun to ease restrictions, it may take years for many retailers and consumers alike to recover.
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