How the CARES Act Failed to Rally Retail
Americans are buying food and iPhones, not clothes
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2020, nearly double the decrease of the next hardest hit industry: that of furniture and home furnishings. Even in July 2020, apparel sales were down 25% year-over-year. In response to the dire effects on the economy, the Coronavirus Aid, Relief and Economic Security Act (CARES), was passed by the US Government on March 27, 2020, releasing $300 billion in economic aid through the medium of stimulus checks to support jobless families and to boost faltering retail spending. According to statements by CEOs of large retail firms such as Apple and Walmart, the stimulus checks distributed in late March did help sustain retail spending. Corie Barry of Best Buy stated that “like many other retailers, we saw sales benefit during the last three weeks of the quarter as customers
Retail stores across the nation brace for economic fallout of the COVID-19 pandemic Spencer Platt / Getty Images
Written By Wally Chang
ECONOMY & LAW
hen the American people hid away in their homes, stopped going to work, and stopped spending money, the American economy too, shrank back. United States GDP dropped 9.1% in Q2 2020, a drop of unprecedented proportions, job employment fell by 20.5 million jobs in April alone, and perhaps most interestingly and impactfully, total retail sales dramatically fell 14.7% from February 2020 to April 2020. Even with companies making dramatic changes to their financial structures in hopes of minimizing losses, the impacts of reduced spending in the retail industry were felt by nearly all outlets. The hardest hit retail sector was undoubtedly that of clothing and clothing accessories, with a decrease in sales of 50.5% from February 2020 to March
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