Beyond the Health Crisis: Business Closings Special Report
Health Crisis Accelerates Previous Retail Trend; Change in Consumer Behavior Hinges on Economy and Medical Solution
Store closings emerge across the country. Following the health crisis, the retail market will evolve as a record number of locations permanently shutter. While the impact on the sector will be significant, the pandemic accelerated a trend that would have likely played out over the next few years. Prior to the shutdown, an additional 1 percent of retail sales were shifting to e-commerce from bricks-and-mortar each year. After spiking to nearly 20 percent of total sales during the health crisis, online retailing is anticipated to account for 18 percent of sales when the economy fully reopens. As the retail market adjusts to a post-pandemic environment, the impact will amount to an approximately three-year shift forward on the move toward online purchases.