Six Ways Covid-19 Will Continue To Impact US Retailers and Consumers

What's Inside

Coronavirus vaccines are now in production, and there are indications that the US economy is on the road to recovery from the global pandemic. In this report, we analyze six ways in which pandemic-driven changes to the economy, retail and consumer behavior will impact the US retail industry moving forward.

These include repercussions from unemployment rates on spending power (which vary across consumer income groups), the effects of changed business operations, such as work-from-home practices and reduced travel, and how a vaccine will influence the outlook for the service industry.

We discuss the implications of these impacts for retailers.

Click here to view additional coverage of the impact of Covid-19 on retail, which includes Coresight Research’s proprietary US consumer survey findings.

CONTENTS

What’s the Story?

Why It Matters

Six Ways Covid-19 Will Continue To Impact US Retailers and Consumers: A Deep Dive

1. The Unemployment Rate Is Moving in the Right Direction, but Recovery May Slow in the Short Term
2. Lower-Income Consumers Will Have Their Spending Constricted in the Short Term
3. Higher Earners May Spend More Freely
4. Birth Rates Will Drop Significantly, Impacting Childcare and Education Spending in the Long Term
5. The Surge in Homebuying Will Drive Retail Sales but Should Wane in the Medium Term
6. A Vaccine Will Prompt a Switch Back to Services in the Medium and Long Term

What We Think

Implications for Brands/Retailers

Implications for Real Estate Firms