In a weird year there are weird vibes emerging from the holiday shopping season. We are smack in the middle of, what is traditionally, the biggest shopping season of the year, yet it is hard for the experts to get a handle on how retailers are doing.
Thousands who were working last year have either been laid-off, furloughed or had hours cut back. What is worse the CARES Act that provides enhanced relief to the unemployed will expire at the end of this month, forcing many to take a hard look at their financial situation going forward.
And then there is the online shopper.
Economists say online shopping has been on the increase over the last few years. The pandemic has increased the use of computers over trips to brick and mortar stores logarithmically. The combination is making it difficult to predict what has been happening to stores this season.
"Part of that is because people are afraid to go shopping. And that's a pretty sensible thing to be nervous about," said Mike Davis, an economics professor at Southern Methodist University's Cox School of Business. But he argues it isn't the ability to spend money, it's the experience. In past years, it was a family experience to go to the mall, complain-but-tolerate the crowds. This year is different . "I suspect a lot of people are sitting at home saying 'What's the point?' just, here's Amazon, click and order."
To be certain, few would argue 2020 has changed the landscape of what Thanksgiving was and what the Christmas season will be. But will the season return when the pandemic finally leaves?
"Christmas is a pain in the neck sometimes. It's expensive, it's a lot of pressure. On the other hand Christmas is the best holiday." Davis said. He feels the season will be different next year but will finally return.
