
A coalition of retail industry groups has called on the US government to ensure stimulus efforts to curb the economic impact of the coronavirus are “swift and flexible” enough to keep businesses afloat.
The National Retail Federation (NRF) and the American Apparel and Footwear Association (AAFA) are among 89 retail industry trade groups that sent a letter to the White House at the weekend.
“The economic harm from social distancing and mandatory store closures is real,” the letter reads. “Layoffs and economic hardship will surely follow, particularly for smaller, speciality retailers and brands. The biggest single issue facing the industry right now is liquidity, and federal stimulus efforts must be swift and flexible enough to address the urgent need for access to credit to keep these businesses afloat.”
Research from the NRF predicts the US retail sector could see a reduction of 20% or more in retail sales over a period of three months, based on similar declines in China. A 20% reduction in sales over a three-month period would result in a total estimated loss of US$429.9bn when considering both direct and indirect sales. This could hit 1.7m US jobs – or more – the NRF says.
The retail industry, and the suppliers it supports, are suffering cumulative losses that amount to tens of billions of dollars every week, the coalition says. As the nation’s largest private-sector employer, supporting 52m working Americans, retailers are committed to sustaining their workforce even if stores must close temporarily.
The 85 national and state retail organisations that signed the letter agree the paramount issue facing the industry right now is liquidity. The groups urged policymakers to consider proposals that protect and preserve the economic health of the retail workforce and provide sufficient liquidity for small, medium and large-scale businesses to remain viable through until the end of the crisis.

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By GlobalDataEfforts were reportedly being made last night between Congressional leaders and President Trump to agree on a financial rescue package totalling $1.8trn. The Bill is said to include direct payments to individuals and families, expanded unemployment benefits and a loan programme to tide over small businesses.
“The economic stimulus packages that are being considered must address the concerns of all different kinds and sizes of retail business, including their suppliers,” the letter reads. “While some retail businesses may be considered “essential” and may be able to remain open, many will not. It is important that the stimulus package provide a bridge, not a bailout, that is flexible enough for retailers and related suppliers of any size to take advantage.”
The NRF says it has engaged with the White House, Treasury and Congress throughout the stimulus bill negotiations and continues to do so.