Essential Spending vs. Online Shopping Quarantine Edition
By Javon Dimitri
- 39.5 million Americans have used e-commerce for groceries alone
- Digital retail sales are up 40%
The U.S economy is continuing its stop and start phased reopening strategy, that’s receiving mixed results from some economists who see this as a sign the economy may not ever get back to normal. In-person businesses which communities of color primarily rely on, are struggling and forcing consumers to spend their money online, with digital retail sales up 40%. Essential spending and online retail shopping may be the new norm, especially for communities of color whose impact from COVID-19 has been hit the hardest.
Why This Matters: More and more Americans have opted to shop online utilizing mega online retailers such as Grubhub and Amazon (AMZN -2.65%). According to a recent study 39.5 million Americans have used e-commerce for groceries alone. This is great for those with access to the internet and these types of services, not just for consumption, but also as a means to generate overall income for minority-owned businesses operating in the space.
There aren’t a ton of Black-owned essential online businesses, they tend to be operate more in a traditional brick and mortar environment
However, there aren’t a ton of Black-owned essential online businesses, they tend to operate more in a traditional brick and mortar environment, making it hard for them to capitalize during the pandemic. There may be economic life after quarantine for these businesses. There were 2.5 million jobs added in May alone as unemployment begins to slowly decline, meaning folks will have money to patronize the essential store fronts.
Situational Awareness: In the Black community super discount stores such as Dollar Tree (DLTR +1.10%) have been vital throughout the pandemic for essentials, especially in food deserts, where the CDC reports more than 23.5 million people live. The mega discount chain plans to hire 25,000 people who have been greatly affected by COVID-19.
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