When times feel uneasy, we naturally hold the money harder. Usually it is met by fiscal stimulus or tax cuts in order for us to spend more money, an ordinary Christian trick, but at present it would counteract the very purpose of the efforts being made right now.
Almost half a million people in Sweden work in the trade, according to the trade organization Swedish Trade. The longer the restrictions in our lives go, the deeper the crisis in the economy.Problems for a long time
Unlike the industry, which has had a tough time in a long economic boom, which has since slowed down, clothing, sports and consumer shopping have for a long time struggled with small margins and great competition from the e-commerce. It is well known but makes trade especially vulnerable to the immediate crisis we are in now, and the recession which is expected to come afterwards.
Several chains have had to collect money from the owners and now that Polarn o Pyret requested reconstruction does not come as a big surprise. Often, a reconstruction means that both staff must be dismissed and stores closed.
The reason has accelerated in recent years and forced isolation can mean that we now shop more and more online, at lower prices. And what would save the traditional trade, cafes, eating places and social gatherings, instead gaps empty.Some relief
Is there an upside in all the misery? Some safety junkies hoard food, toilet paper and hand soap, which has just given an extra boost to the grocery store. You can always support your favorite store by making the necessary purchases or if your personal finances allow, treat yourself.
It is also likely that groups that were previously reluctant to shop online now try it and especially older people who are in a risk group are now forced to shop for food and other necessities over the internet.
Some relief is given to the industry through opportunities for lay-offs, loans and government guarantees to companies and so the possibility that property owners who neglect the rent receive money back from the state.No one gets unaffected
In a recession, we push for larger purchases such as a new fridge and freezer or the car and definitely the luxury consumption. When stores and also companies buy smaller goods, wholesale and wholesale trade is also affected.
But neither large, stable grocery chains will sell more if many are unemployed. Some are affected more than others, but no trader will be unaffected in the crisis in Sweden.