We’re in day 24 of what is now the longest government shutdown in U.S. history, and while our commander-in-chief continues to play footsie with constitutional vandalism, Retail Dive took a look at both the short- and long-term affects the situation is having on the already-troubled retail industry.
While the story is quick to note that the “furloughed workers and their families, along with veterans and others depending on federal services, are the real victims,” it also states that, for retail, “the shutdown couldn’t be timed more terribly.”
On the customer side, “there are already signs that the robust economy and consumer confidence that helped fuel record holiday sales may be receding somewhat, and a protracted shutdown could begin to fray consumers’ nerves.”
And on the government side, “the lack of [federal] pay has a serious impact on morale,” and if it continues, “we can probably expect slowdowns and possible disruptions” when it comes to clearing imported goods for U.S. entry.
Additionally, the story said that “there will likely be a drag on consumption” as the shutdown “could impact the timing of government disbursements,” and the subsequent paucity of literal spending money will undoubtedly impact retailers across the board.
Also: businesses can’t apply for permits, they can’t verify a potential employee’s work eligibility, they have no way to get loans from the Small Business Administration — you know, basically any bureaucratic necessity.
And “the more [the shutdown] drags on, the more damage it will do [to the industry],” the story said. “There are all kinds of cascading ramifications to this thing — none of them look good. None of them are happy outcomes for anybody.”
You can read more about it at Retail Dive.
