ECON 41% Of Business Closures On Yelp Have Permanently Closed As V-Shaped Recovery Implodes

President Trump's economic COVID-19 response, through massive fiscal and monetary stimuli, was expected to generate a V-shaped recovery ahead of the elections. We noted, all along, there was never a snowball's chance in hell that economic growth would revert to 2019 levels later this year; nevertheless, the labor market would fully recover.

If readers recall, President Trump has given several press conferences where he declared that the economy is quickly recovering: "We've been talking about the V," the president said. "This is better than a V. This is a rocket ship."
A new report via Yelp, tilted "Local Economic Impact Report," debunks the V-shaped narrative and tells a much different story of slow reopenings and widespread permanent closures, all suggesting the economic devastation continues to crush the economy with no recovery in sight.

Yelp data shows large swathes of Americans remain in deep recession through mid-June. Since April 19, only 20% of the 175,000 Yelp-registered stores that were closed during lockdowns have reopened.

"As of June 15, there were nearly 140,000 total business closures on Yelp since March 1. In April, we reported more than 175,000 business closures, indicating that more than 20% of businesses closed in April have reopened.
"Las Vegas, NV, endured the highest number of closures relative to the number of businesses in the city (1,921 total closures), while Los Angeles, CA, had the largest total number of closures (11,774 total closures)."
h/t Yelp

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Yelp makes a shocking claim: "Of all business closures on Yelp since March 1, 41% are permanent closures."

"Our data shows the largest spikes of permanent closures occurred in March, followed by May and June, indicating that the businesses that were already struggling had to permanently close right away and the businesses that were trying to hold on, but unable to weather the COVID-19 storm, were forced to shutter in recent months."

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Of the businesses that shuttered operations, restaurants and shopping/retail have led with the most permanent closures.

"Among those with the highest rate of business closures are shopping and retail (27,663 closed businesses), restaurants (23,981 closed businesses), beauty (15,348 closed businesses) and fitness (5,589 closed businesses).
"Retail was by far the hardest hit, experiencing the highest number of total closures, with the average daily rate continuing to increase since March. Of all closures on Yelp since March 1, 20% are for retail businesses and 35% of closed retail businesses are indicated as permanent on Yelp.
"In March, Restaurants had the highest number of business closures, compared to other industries, and have continued to close at high rates. Of the businesses that closed, 17% are restaurants, and 53% of those restaurant closures are indicated as permanent on Yelp. Restaurants run on thin margins and can sometimes take months or even years to break even, resulting in this higher rate of permanent closures."
h/t Yelp

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What this all means is the recovery is losing steam. Consumer spending is set to plunge again this summer as the Paycheck Protection Program and other stimulus has run its course. With no recovery - more business closures/ likely more permanent closures and increased job losses are ahead.

And the consequences will continue until everyone agrees to wear masks all the time! Even at home! Didn't we tell you!

The only V-shaped "recovery" was on Wall Street. As usual, Main Street got skrood.

There is no happy face to put on this one.

Dozdoats said:

There is no happy face to put on this one.

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Buy a Sharpie and draw it on your mask?

And start another SharpieGate?

Cardinal said:

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

President Trump's economic COVID-19 response, through massive fiscal and monetary stimuli, was expected to generate a V-shaped recovery ahead of the elections. We noted, all along, there was never a snowball's chance in hell that economic growth would revert to 2019 levels later this year; nevertheless, the labor market would fully recover.

If readers recall, President Trump has given several press conferences where he declared that the economy is quickly recovering: "We've been talking about the V," the president said. "This is better than a V. This is a rocket ship."
A new report via Yelp, tilted "Local Economic Impact Report," debunks the V-shaped narrative and tells a much different story of slow reopenings and widespread permanent closures, all suggesting the economic devastation continues to crush the economy with no recovery in sight.

Yelp data shows large swathes of Americans remain in deep recession through mid-June. Since April 19, only 20% of the 175,000 Yelp-registered stores that were closed during lockdowns have reopened.

Yelp makes a shocking claim: "Of all business closures on Yelp since March 1, 41% are permanent closures."

Of the businesses that shuttered operations, restaurants and shopping/retail have led with the most permanent closures.


What this all means is the recovery is losing steam. Consumer spending is set to plunge again this summer as the Paycheck Protection Program and other stimulus has run its course. With no recovery - more business closures/ likely more permanent closures and increased job losses are ahead.

Click to expand...

I think I reported that the WSJ had an article stating that the savings rate had gone way up. Which means even less money circulating around enhancing the economy. We are doomed.

Troke said:

I think I reported that the WSJ had an article stating that the savings rate had gone way up. Which means even less money circulating around enhancing the economy. We are doomed.

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In order to retake The White House, and to increase their overall control of the ZUSA,
the damocraps released COVID-19, to crash the ZUSA economy, to usher in The Greater Depression.

They have succeeded.

Nothing but hell is coming in November 2020, payback for November 2016.

We are doomed.

Please be safe everyone. Pray for the return of Christ.

Regards to all.

Nowski

In less than a month it has gone up almost 20%


As COVID-19 Rages On, Yelp Reports 60% Of Temporarily Shuttered Restaurants Are Now Closed For Good
Hannah Rimm
July 22, 2020, 12:34 PM

As COVID-19 continues to spread, many states are pausing or rolling back their reopenings, forcing restaurants across the country to reevaluate their plans. While some restaurants have adapted since March, offering takeout and outdoor-only dining, those without the luxury of outdoor space or takeout-friendly food are now being forced to permanently shutter at an alarming rate. According to Yelp’s most recent Economic Average report, 60% of restaurants previously marked as “temporarily closed” have now closed their doors for good.

The report also reveals a very clear correlation between increased interest in Yelp businesses such as restaurants, bars, and gyms, and new COVID-19 cases. As restrictions have decreased and activity has increased, Yelp has identified hot spots for new cases in Florida, Nevada, Texas, South Carolina, Georgia, and other states that match with high levels of attendance at Yelp businesses.

But as some states pull back on reopening and the future of small businesses becomes even murkier, temporary closures are becoming permanent ones at a staggering rate. Of all the business hit hard during this pandemic, the restaurant industry now has the highest number of permanent closures with 15,770 restaurants shuttered for good as of July 10. Right behind the restaurant industry is the bar and nightlife industry with 44% of temporary closures becoming permanent. The states with the highest percentages of closures at the time of Yelp’s report are Hawaii, Nevada, California, and Arizona — with most business owners citing recent COVID-19 breakouts and high rent among the reasons for closing for good.

Yelp did, however, find one positive in this sea of closures: search for Black-owned businesses is at an all-time high. Search for all Black-owned businesses is up 7,043% from last year with searches up for everything from Black-owned restaurants (up 2,508%) to Black-owned ice cream shops (up 161%).

The places around here that are open are busy, very busy.

The 60% that do not reopen will be replaced by new business though I expect the numbers to be less than 60%. In reality, many will close under one name and reopen under another with fewer employees if any at all.

Or

They will reopen later under a new business model. An example of changing the model is our local pizza place. They now do more business with Dine and Dash than they do with regular take out and eat in combined. We were told it was a hard process to get right, but they did and now they can survive. Result at least 8 people will no longer have a job, but the business is stronger for it as the money they pay / share with Dine and Dash is far less than the employee costs.

I see a lot of this happening.

The local church ( mall church ) and auto parts shop both closed and moved to locations that have no or far less costs. The Church moved to someone's yard / barn to save money and the auto place moved to their garage. Savings of about 10+ thousand dollars per year.

41% Of Business Closures On Yelp Have Permanently Closed As V-Shaped Recovery Implodes

Exactly as the Marxists have planned it.

Peeps are freaking out on Facespy... Petco is shuttering 348 of their stores by the end of January.

Edited: It's Pet Valu that's shuttering it's doors. That said there are still photos of PetCo's with 70% off signs in the windows and notices above the doors saying Store Closing Soon, being posted in the pet groups on Facespy.