Second quarter earnings season is showing investors how COVID-19 is impacting the retail landscape, and examinations of the latest earnings reports can help investors make much better decisions in the future.
The health crisis is forcing people to stay at home more often, instigating a major disruption of brick-and-mortar sales. A sharp rise in unemployment presents a challenge to demand, but that appears more than offset by government stimulus and rising stock prices for the time being, especially among groups that are more insulated from job loss. Perhaps most importantly, the changing conditions are accelerating major structural shifts to the retail economy, the start of which predate coronavirus.
The most recent earnings reports from retail can be highly informative and educational for investors. This data provides an excellent case study for industries in crisis, as well as a general reading on the changing behavior of American consumers. This is also a major look into how the retail industry will continue to change in the coming years.