Westlake Word

In March 2020, prior to the Covid-19 outbreak, small businesses were thriving and consumers were able to go anywhere to shop. The economy was doing great and worldwide consumption was at its peak. 

 

A year later, after all the Covid lockdowns, it has become increasingly more difficult for people to run to the store and do daily shopping. This has led to a worldwide change in consumption. 

 

Economists have noticed a significant change in worldwide commerce in the past year alone, including the sudden increase in online shopping and small business closures. 

 

The Covid Pandemic has brought lots of changes to the world. One of the most noticeable ones being the change to the United States economy. The fast-changing nature of the pandemic caused people and business owners to adapt quickly. People who were not accustomed to shopping on the internet needed to learn and small business owners who only made sales in person had to create online platforms to keep up.

 

 At the start of the pandemic, when the world was forced into its first lockdown, people were scrambling to get all that they could before everything started to close, hence the toilet paper shortage. However, since the lockdown was much longer than anticipated, the world had to find a new way to shop and buy all that they needed.

 

 Online shopping became a necessity for many people and families who needed to buy food, clothing, and other everyday essentials. Companies like Amazon benefited greatly from this trend and their sales went through the roof. 

 

However, many small businesses and stores began to struggle to stay open due to the lack of sales. 

 

Quarterly figures released by the U.S. The Department of Commerce claim how “Americans spent $791.7 billion online last year, up 32.4% from 2019,” according to Annie Palmer of CNBC News. This jump is significantly greater than any normal year. However, these numbers come as no surprise to Americans as this change has been very evident in society over the course of the past year. 

 

Gena Garritano, an avid shopper, says, “Covid has affected the way I shop drastically. I am shopping online much more than I have ever done in the past”. But, Garritano isn't the only person who feels this way. 

 

Another study released by the U.S Department of Commerce states how “E-commerce ended the year accounting for 14% of all U.S. sales, up from 11% in 2019,” Palmer reports. This makes it clear how online shopping has become essential to keeping a stable and smooth running economy, at least for America. 

 

With this sudden rise in online shopping also comes some more negative effects, most prominently, the increase in small business closures. Covid already caused many families financial problems, and it is even worse that small businesses are also experiencing less foot traffic in their stores. These challenging times are heightened for those trying to sustain their business. 

 

According to Gabrielle Olya, in late March 2021, a study released by Main Street America, states, “nearly 60% said their revenue had decreased by more than 75% since the start of the pandemic.” This statistic accurately depicts how difficult Covid has been on small businesses. 

 

Over half of all American small businesses have directly felt the toll of Covid on their sales. Along with that, many small businesses haven't been able to open up in over a year. 

 

To combat this growing trend, President Joe Biden passed the $1.9 trillion American Rescue Plan Act, intended to help support small businesses, Olya said. This act was one of many passed in the past year to help financially support small businesses. While the acts were considerably successful, unfortunately, it was not enough for some businesses, thus impacting their workers too. 

 

The availability of the vaccine brings hope that the economy may soon be back to normal. But there is definitely a long road ahead for small business owners and workers.

Works Cited

 

Olya, Gabrielle. "What COVID-19 Has Meant for Small Businesses." Yahoo Finance, 24 May 2021, finance.yahoo.com/news/covid-19-meant-small-businesses-110035916.html. Accessed 25 Mar. 2021.

 

Palmer, Annie. "Groceries and sporting goods were big gainers in the Covid e-commerce boom of 2020." CNBC, 19 Feb. 2021, www.cnbc.com/2021/02/19/e-commerce-surged-during-covid-groceries-sporting-goods-top-gainers-.html. Accessed 25 Mar. 2021.

 

 Garritano, Gena. mother and shopper