Connect with us

The Staggering Impact Of Online Shopping

The Staggering Impact Of Online Shopping

Tyler Durden

Wed, 12/09/2020 – 15:02

Authored by Bruce Wilds via Advancing Time blog,

The ramifications of online shopping during this holiday season while covid-19 rages across the land…

Published

on

The Staggering Impact Of Online Shopping Tyler Durden Wed, 12/09/2020 - 15:02

Authored by Bruce Wilds via Advancing Time blog,

The ramifications of online shopping during this holiday season while covid-19 rages across the land will be staggering. The fourth quarter is the time of year when retailers normally make the bulk of their annual profits thanks to holiday shopping. The National Retail Federation reported online shopping soared 44% over the five days, including Black Friday and Cyber Monday. This indicates a huge drop in foot traffic in brick-in-mortar-stores at a time when retailers are headed into the holidays loaded to the gills with inventory. This season is seen as a do or die situation for many of these stores which will not make it anyway because the deck is stacked against them.

Expect Many Local Stores To Close

This year due to the pandemic much of the world is in a semi-shutdown. This has caused online shopping to surge to the point where UPS was forced to impose shipping restrictions on major retailers. On Cyber Monday with delivery networks stretched thin, delivery drivers were instructed not to pick up any packages from six major retailers, including L.L. Bean Inc., Hot Topic Inc., New Egg Inc., and Macy's. A memo confirmed by WSJ sources as authentic. stated: "No exceptions." The limits imposed by UPS highlights how the influx in packages has put its shipping network under stress and its commitment to putting its regular customer base first.

Abandoned Malls, A Canary In A Coal Mine

Circling back to the retailers. Many small stores and businesses do not have much if any online presence, and if they do search engines intentionally bury them far under Amazon and the other big-boys. Another thing that will be missing this year is profits. They are facing a cut-throat environment where sales and getting out the product has become as important as the price products sell for. The fear is that when all is said and done much of the inventory leftover will have to be discounted or sold at a loss. This is especially true of seasonal items. This means throughout the remainder of the holiday season expect to see promotions based on curbside pickup to gain even more momentum as shoppers seek to avoid crowds and potential shipping delays.

Small business is the backbone of America, it is where people work and corruption is scarce. It is the workhouse that gets things done and a place where the numbers still make sense. Unlike government that can simply cover mistakes and losses by raising taxes or expanding its deficit, small businesses get smacked square in the face by reality. For small businesses, this is crunch time. Sadly, in my area, online shopping coupled with covid-19 are forcing businesses to close that have been around for decades, this is not just destroying newly formed endeavors. The chart below indicates that when all is said and done more will be forced to close their doors.

Feeding into this year's online and holiday spending is the current bizarre economy. A surging government deficit adds to the impression the economy is not in trouble or in a recession. This is even with over 20 million people still claiming state or federal unemployment benefits. According to the Bureau of Economic Analysis, while personal income from all sources was down 6.9% from the massive stimulus-and-unemployment-money-induced spike in April, it is still up 5.5% from a year ago.

While many people consider online shopping as efficient it is generally because they focus on just a few aspects of the process. We should not discount the problems surrounding shopping online. The environmental impact of billions of small packages being rushed and delivered as well as the huge number of these that flow into landfills unused is staggering. It is not the efficient system many people think and the difficulty returning items that fail to meet expectations is often ignored for the illusion of convenience.

Some of the numbers we are seeing are shocking, online spending on Black Friday jumped by 21.6% to a record $9 billion, according to data from Adobe Analytics. This makes Black Friday, which was created to kick-start the brick and mortar holiday season the second-largest single day for online shopping in U.S. history. It should be noted that Adobe recently cut its estimate for online spending this holiday season to $184 but the lowered estimate still marks a 30% increase from last year's total. This all underlines the idea the annual Friday midnight pilgrimage to local malls which we have come to know as Black Friday, is no more.

Again it appears that one online retailer, Amazon is sucking the air out of the room with its monopolistic engulf and devour strategy of weaseling into all parts of our lives. The company is claiming a 60% increase from last year. Amazon then tried to spin this news by saying an astonishing 71,000 small- and medium-sized businesses across the world have already surpassed $100,000 in sales so far this holiday season. The fact is this second part of their announcement when put into context is meaningless.

I can already hear the wheels spinning in the heads of those readers that disagree with my push-back over this explosion in online sales as unhealthy for the economy. The argument that expanding online sales represents progress denies the harmful ramifications of undermining small business in our society and on our culture. Small businesses and the jobs they create as well as how they bind a community and its people together are very important.

The sluggish in-person traffic reported in 2019 is expected to thin out further unless something is done. The trend is in place, we are witnessing mall-wary shoppers trading in their practice of rushing to stores to buy midnight door-buster specials when they can get the same deals from the comfort of their homes. Most small businesses have little or no online presence and the push to buy local this year will offer only a small amount of relief. We can expect these retailers to experience a tough season and at its end fold into history leaving an empty space for lease to mark their absence. 

Remember, brick and mortar stores suffer several expenses not fostered upon online companies. Whether it is the cost of maintaining landscaping, ensuring safe ingress and egress, or providing a parking lot for customers these costs rapidly add up. Staffing for longer hours for the convenience of customers often results in being open when foot traffic would indicate a store should be closed and even dealing with security and shoplifters is another expensive burden. To make matters worse, stores have also had to face a slew of dishonest shoppers trying to sneak defectives products purchased online back as exchanges and trading them for a fresh unbroken product. This costly abuse has been recommended by several online shoppers as an "easy fix" for their problems while ignoring the ethical issues it creates. 

Negative attack ads are very effective in politics, after watching a "small businesses unite" commercial it may be time for them to put together a few ads telling people to Boycott Amazon. While leaders on both the left and right of the political spectrum have spoken out against this company, it appears the majority of consumers don't understand just how much harm and damaging this company is doing to the country. It exploits America with its predatory engulf and devour strategyAnother idea with even more merit is instituting an online transaction fee to help level the playing field between online and brick and mortar retailers. Like most Americans I'm not a lover of any kind of tax, it may be just what is needed to halt the damage flowing from this shift in how consumers shop.

An online transaction fee is a very big proposal and even raising it for discussion would help to shed a spotlight on the damage being done to our communities. The fact is, it would help many small businesses across America remain in operation. The revenue from such a fee would be sent to local governments in the area where the sale originated or goods are shipped. Rather than getting stuck on the details of an online transaction fee that will most likely never occur we should instead think about what kind of community and world we wish to live in and how best to preserve the nature and quality of life we seek. The ugly reality is that store closures are set to accelerate. This is a cancer on America. Large retailers as a group are collectively set to lock the doors for the last time at thousands of stores this year and communities will pay a heavy price.

Read More

Continue Reading

Government

Looking Back At COVID’s Authoritarian Regimes

After having moved from Canada to the United States, partly to be wealthier and partly to be freer (those two are connected, by the way), I was shocked,…

Published

on

After having moved from Canada to the United States, partly to be wealthier and partly to be freer (those two are connected, by the way), I was shocked, in March 2020, when President Trump and most US governors imposed heavy restrictions on people’s freedom. The purpose, said Trump and his COVID-19 advisers, was to “flatten the curve”: shut down people’s mobility for two weeks so that hospitals could catch up with the expected demand from COVID patients. In her book Silent Invasion, Dr. Deborah Birx, the coordinator of the White House Coronavirus Task Force, admitted that she was scrambling during those two weeks to come up with a reason to extend the lockdowns for much longer. As she put it, “I didn’t have the numbers in front of me yet to make the case for extending it longer, but I had two weeks to get them.” In short, she chose the goal and then tried to find the data to justify the goal. This, by the way, was from someone who, along with her task force colleague Dr. Anthony Fauci, kept talking about the importance of the scientific method. By the end of April 2020, the term “flatten the curve” had all but disappeared from public discussion.

Now that we are four years past that awful time, it makes sense to look back and see whether those heavy restrictions on the lives of people of all ages made sense. I’ll save you the suspense. They didn’t. The damage to the economy was huge. Remember that “the economy” is not a term used to describe a big machine; it’s a shorthand for the trillions of interactions among hundreds of millions of people. The lockdowns and the subsequent federal spending ballooned the budget deficit and consequent federal debt. The effect on children’s learning, not just in school but outside of school, was huge. These effects will be with us for a long time. It’s not as if there wasn’t another way to go. The people who came up with the idea of lockdowns did so on the basis of abstract models that had not been tested. They ignored a model of human behavior, which I’ll call Hayekian, that is tested every day.

These are the opening two paragraphs of my latest Defining Ideas article, “Looking Back at COVID’s Authoritarian Regimes,” Defining Ideas, March 14, 2024.

Another excerpt:

That wasn’t the only uncertainty. My daughter Karen lived in San Francisco and made her living teaching Pilates. San Francisco mayor London Breed shut down all the gyms, and so there went my daughter’s business. (The good news was that she quickly got online and shifted many of her clients to virtual Pilates. But that’s another story.) We tried to see her every six weeks or so, whether that meant our driving up to San Fran or her driving down to Monterey. But were we allowed to drive to see her? In that first month and a half, we simply didn’t know.

Read the whole thing, which is longer than usual.

(0 COMMENTS)

Read More

Continue Reading

Uncategorized

The hostility Black women face in higher education carries dire consequences

9 Black women who were working on or recently earned their PhDs told a researcher they felt isolated and shut out.

Published

on

By

Isolation can make opportunities elusive. fotostorm via Getty Images

Isolated. Abused. Overworked.

These are the themes that emerged when I invited nine Black women to chronicle their professional experiences and relationships with colleagues as they earned their Ph.D.s at a public university in the Midwest. I featured their writings in the dissertation I wrote to get my Ph.D. in curriculum and instruction.

The women spoke of being silenced.

“It’s not just the beating me down that is hard,” one participant told me about constantly having her intelligence questioned. “It is the fact that it feels like I’m villainized and made out to be the problem for trying to advocate for myself.”

The women told me they did not feel like they belonged. They spoke of routinely being isolated by peers and potential mentors.

One participant told me she felt that peer community, faculty mentorship and cultural affinity spaces were lacking.

Because of the isolation, participants often felt that they were missing out on various opportunities, such as funding and opportunities to get their work published.

Participants also discussed the ways they felt they were duped into taking on more than their fair share of work.

“I realized I had been tricked into handling a two- to four-person job entirely by myself,” one participant said of her paid graduate position. “This happened just about a month before the pandemic occurred so it very quickly got swept under the rug.”

Why it matters

The hostility that Black women face in higher education can be hazardous to their health. The women in my study told me they were struggling with depression, had thought about suicide and felt physically ill when they had to go to campus.

Other studies have found similar outcomes. For instance, a 2020 study of 220 U.S. Black college women ages 18-48 found that even though being seen as a strong Black woman came with its benefits – such as being thought of as resilient, hardworking, independent and nurturing – it also came at a cost to their mental and physical health.

These kinds of experiences can take a toll on women’s bodies and can result in poor maternal health, cancer, shorter life expectancy and other symptoms that impair their ability to be well.

I believe my research takes on greater urgency in light of the recent death of Antoinette “Bonnie” Candia-Bailey, who was vice president of student affairs at Lincoln University. Before she died by suicide, she reportedly wrote that she felt she was suffering abuse and that the university wasn’t taking her mental health concerns seriously.

What other research is being done

Several anthologies examine the negative experiences that Black women experience in academia. They include education scholars Venus Evans-Winters and Bettina Love’s edited volume, “Black Feminism in Education,” which examines how Black women navigate what it means to be a scholar in a “white supremacist patriarchal society.” Gender and sexuality studies scholar Stephanie Evans analyzes the barriers that Black women faced in accessing higher education from 1850 to 1954. In “Black Women, Ivory Tower,” African American studies professor Jasmine Harris recounts her own traumatic experiences in the world of higher education.

What’s next

In addition to publishing the findings of my research study, I plan to continue exploring the depths of Black women’s experiences in academia, expanding my research to include undergraduate students, as well as faculty and staff.

I believe this research will strengthen this field of study and enable people who work in higher education to develop and implement more comprehensive solutions.

The Research Brief is a short take on interesting academic work.

Ebony Aya received funding from the Black Collective Foundation in 2022 to support the work of the Aya Collective.

Read More

Continue Reading

Uncategorized

US Economic Growth Still Expected To Slow In Q1 GDP Report

A new round of nowcasts continue to estimate that US economic activity will downshift in next month’s release of first-quarter GDP data. Today’s revised…

Published

on

A new round of nowcasts continue to estimate that US economic activity will downshift in next month’s release of first-quarter GDP data. Today’s revised estimate is based on the median for a set of nowcasts compiled by CapitalSpectator.com.

Output for the January-through-March period is currently projected to soften to a 2.1% increase (seasonally adjusted annual rate). The estimate reflects a substantially softer rise vs. Q4’s strong 3.2% advance, which in turn marks a downshift from Q3’s red-hot 4.9% increase, according to government data.

Today’s revised Q1 estimate was essentially unchanged from the previous Q1 nowcast (published on Mar. 7). At this late date in the current quarter, the odds are relatively high that the current median estimate is a reasonable guesstimate for the actual GDP data that the Bureau of Economic Analysis will publish in late-April.

GDP rising at roughly a 2% pace marks another slowdown from recent quarters, but if the current nowcast is correct it suggests that recession risk remains low. The question is whether the slowdown persists into Q2 and beyond. Given the expected deceleration in growth on tap for Q1, the economy may be flirting with a tipping point for recession later in the year. It’s premature to make such a forecast with high confidence, but it’s a scenario that’s increasingly plausible, albeit speculatively so for now.

Yesterday’s release of retail sales numbers for February aligns with the possibility that even softer growth is coming. Although spending rebounded last month after January’s steep decline, the bounce was lowr than expected.

“The modest rebound in retail sales in February suggests that consumer spending growth slowed in early 2024,” says Michael Pearce, Oxford Economics deputy chief US economist.

Reviewing retail spending on a year-over-year basis provides a clearer view of the softer-growth profile. The pace edged up to 1.5% last month vs. the year-earlier level, but that’s close to the slowest increase in the post-pandemic recovery.

Despite emerging signs of slowing growth, relief for the economy in the form of interest-rate cuts may be further out in time than recently expected, due to the latest round of sticky inflation news this week.

“When the Fed is contemplating a series of rate cuts and is confronted by suddenly slower economic growth and suddenly brisker inflation, they will respond to the new news on the inflation side every time,” says Chris Low, chief economist at FHN Financial. “After all, this is not the first time in the past couple of years consumers have paused spending for a couple of months to catch their breath.”


How is recession risk evolving? Monitor the outlook with a subscription to:
The US Business Cycle Risk Report


Read More

Continue Reading

Trending