We are experiencing a new realities these days: inflation, war, continued supply chain delays, etc! On the other hand, the economy is strong, wages are up, and demand is still very high.
These are not normal conditions, especially in a super large economy such as the U.S. The US is the largest economy in the world (almost 25% of world’s GDP) with its currency serving as the world reserve currency (if you don’t know what this means, ask me!).
It’s so far anyone’s guess how long this situation will last. As we have discussed in class, over 70% of the US economy, which is the biggest in the world by GDP measures, come from Consumer Spending. So, if demand drops, and if we the people, are not out there spending (e.g. going to restaurants, events, gathering), and if the retail industry is not selling, then the economy suffers. Additionally retailers seem to have harder and harder time providing the goods that people are demanding.
What we know for sure is that many (or most) of these problems can be traced back to Covid Virus restrictions world wide and damage to the global supply chains and the resulting Federal Reserve measures of stimulating the economy. And of course, the added pressures of the war in Europe on commodities and geopolitics.
1 – How do you think the Corona Virus restrictions and all the other issues mentioned above have affected the economy in general, and retail specifically? Explain in your own words using what we have studied about retail and marketing in class and what you can research. (minimum 150 word)
2- How has this “new normal” affected your retail shopping personally? Did you change any of your shopping habits? Do you use new tools? You don’t have to provide personal details if you don’t like to, but try to analyze it in a local level using the issues and terminology discussed so far in class (minimum 150 words )
3- Do you think our retail industry will bounce back quickly after all of this? Or would people’s buying habits change forever (such as buying online instead of in the stores)? We have discussed this in class form time to time, but try to provide in-depth analysis or educated guesses as best as you can. (minimum 150 words )
