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Author Topic: 60% of Business Closure Are Now Permanent  (Read 1887 times)

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Offline RomanCatholic1953

60% of Business Closure Are Now Permanent
« on: September 17, 2020, 09:54:03 AM »
Yelp Reveals 60% Of Business Closures Are Now Permanent 


by Tyler Durden
Wed, 09/16/2020 - 21:50




The virus pandemic shock is generating deep economic scarring, the likes of which many have never seen before. The virus-induced downturn has led the economy into a "liquidity trap," in which interest rates will likely reside on the zero lower bound until 2023, and monetary policy could have trouble stimulating the real economy besides artificially inflating asset prices. As Washington pumps fiscal injection after fiscal injection into the real economy, creating unstable artificial growth, the latest lapse of fiscal support, now 46 days, has sent the economy into another slump.
For more color on the deep economic scarring, not just a deterioration in the labor market, we turn our attention to a Yelp report published Wednesday that revealed as of Aug. 31, 163,735 businesses have closed on the platform, a 23% increase since mid-July.
Yelp pointed out an increase of permanent business closures over the past six months, now reaching 97,966, or about 60% of closed businesses will never reopen their doors again.  
Quote
"As of August 31, 163,735 total U.S. businesses on Yelp have closed since the beginning of the pandemic (observed as March 1), a 23% increase since July 10. In the wake of COVID-19 cases increasing and local restrictions continuing to change in many states we’re seeing both permanent and temporary closures rise across the nation, with 60% of those closed businesses not reopening (97,966 permanently closed)." 
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"Overall, Yelp's data shows that business closures have continued to rise with a 34% increase in permanent closures since our last report in mid-July," Justin Norman, Yelp's vice president of data science, told CNBC. 

Yelp notes restaurants, shopping and retail, and beauty and spas have been damaged the most with temporary and permanent closures since March 1. About 32,109 restaurants closed on Yelp, with 19,590 of those permanent, or about 61%. Shopping and retail saw 30,374 business closures, with 58% of those permanent. Beauty and spas saw 16,585 cYelp notes restaurants, shopping and retail, and beauty and spas have been damaged the most with temporary and permanent closures since March 1. About 32,109 restaurants closed on Yelp, with 19,590 of those permanent, or about 61%. Shopping and retail saw 30,374 business closures, with 58% of those permanent. Beauty and spas saw 16,585 closures, with 42% of which are permanent. 

Professional services, like roofing, landscaping, accountants, and lawyers, experienced some of the smallest declines. Meanwhile, restaurants and retail businesses have been struggling the most. Readers may recall, dying restaurants have been panic selling assets on Facebook Marketplace as the industry remains in a bust cycle. 

losures, with 42% of which are permanent. 


And what does this all mean? Well, policy tools, if that is monetary of fiscal, are producing diminishing returns that will likely result in a recovery that does not resemble a "V." The road to recovery could take years as the latest analysis from Opportunity Insights of US business activity reveals the number of small businesses open is plunging. 
And by the way, the fiscal cliff, which we've warned about since late July (see: here) - is finally showing up in economic data as online spending growth hit a wall. Lower spending by consumers will pressure businesses and lead to more closures.  

What this all means is that America's coming double-dip recession could be dead ahead.  [/font][/size][/font][/size]
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Offline Last Tradhican

Re: 60% of Business Closure Are Now Permanent
« Reply #1 on: September 18, 2020, 07:33:23 AM »
https://plainvanillashell.com/oped.asp?id=1671

The Future of Retail: An Update for Community Leaders
From The Buxton Co
By Julie Glover, Professional in Residence
In March 2020, when most of the country “shut down,” many thought it was a temporary measure and some considered it overly cautious. As the weeks have turned into months, many businesses and institutions are still completely, or partially, shuttered.
Buxton monitors and quantifies the impact of COVID‑19 on a variety of industries in our Consumer Impact Dashboard. Not surprisingly, the restaurant, retail, travel and hospitality industries, which were completely closed, have taken most of the hit; grocery, beer, liquor, and wine sales soared.
Once people started staying home, and stopped spending as much money as before, the natural next step was the recession we are currently experiencing.
Many community leaders may be wondering what to expect as we continue to navigate the challenges of the current economic environment. While no one can predict with perfect accuracy, the following trends provide some insights into which industries are likely to thrive in spite of the challenges during the months ahead.
Looking to the Past: Recession‑Proof Businesses
Historically there are some industries and sectors that do better in a recession than others. Typically, utilities, health care and consumer staples remain steady during an economic downturn because people need water, power, medical services, and food, no matter what else is happening in the economy.
Industries that did well in the 2008 recession included discount retailers, healthcare, consumer staples, freight and logistics, Do‑It‑Yourself projects and repairs, and food and restaurants.
Current Trends: Industries Defying the Odds
Currently, companies that supply services which support online shopping, work arrangements, teleconferencing, and at-home substitutes for traditional services have huge opportunities. Pharmaceutical, e‑commerce, home improvement, patio and backyard improvements are all on the rise as well.
Many people are having a “stay‑at‑home” summer this year. They are investing in their homes and leisure activities that they can enjoy with their families, such as above‑ground pools, hot tubs, landscaping, and home exercise equipment. Travel trailer rental and sales, camping equipment, and road trips to remote locations, such as state parks, are on the rise.
Companies involved in software or 5G are doing well, as people and companies make the shift to work from home, hold meetings online, and offer goods and services via delivery. Even after the pandemic has passed, as people and businesses shift their thinking more toward remote working, these sectors should remain strong.
The Bottom Line
As a country we have been through 17 recessions and depressions since 1797. The history of recessions in the United States shows that they are a natural, though painful, part of the business cycle. We will come out of this one changed again, but Buxton is here to help you navigate the changes and come out on the other side stronger than ever.
To keep a pulse on the health of your local economy, assess the consumer impact in your community and which types of businesses are being affected. Learn how Buxton’s Consumer Impact Dashboard can help.
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Offline Viva Cristo Rey

Re: 60% of Business Closure Are Now Permanent
« Reply #2 on: September 18, 2020, 11:01:55 AM »
They deserved to be shut down.  If they all got together, it would never had happened.  After all the hypocrisy, they should just all reopened at once. The only ones left are the boot kickers who will be next to close down.

They are planning another lockdown. 

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Offline meek

Re: 60% of Business Closure Are Now Permanent
« Reply #3 on: September 20, 2020, 06:19:22 PM »
Quote from: Last Tradhican on September 18, 2020, 07:33:23 AM
The history of recessions in the United States shows that they are a natural, though painful, part of the business cycle.
So say the children of Adam Smith whose thesis has created modern economics. We're supposed to just accept that, like we're supposed to accept the only alternative is Marxism.
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Offline St Frumentius

Re: 60% of Business Closure Are Now Permanent
« Reply #4 on: October 09, 2020, 08:47:42 PM »
The plandemic was always about a wealth transfer to mega corporations, who has control over the global financial reset, and diverting guilt away from the Bankers who are orchestrating all of it.
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