AMES, Iowa -- This year's holiday shopping season is likely to be tough for retailers.
"A lot of our retailers who count on the holiday season to get them through the rest of the year--like a lot of stores that have been effected by the COVID-19 pandemic--I believe that many of them will suffer, if not fail" says Iowa State University Economist Dave Swenson.
He says people who lost income during COVID-19 business slow-down will shop less this holiday season.
"Incomes have gone down, so we have to start out with expecting lower total sales across the board" he says.
Swenson says years of increasing online sales are likely to be even more so this year, as shoppers stay away from shopping malls and other crowded shopping areas.
"Everyone's going to try to figure out a way to facilitate the flow of goods to my house. If can buy something online from a local vendor, I'm going to do that if I can" he says.
Swenson says small retailers with a strong online retail presence may be in a better position to weather a downturn in this year's holiday economy that those who don't do as much business through the internet.