Yelp Economic Average Uncovers a Drop in Total Business Closures and a Rise in Permanent Closures During the Second Quarter - Seite 3

Permanent Closures Continue to Increase Across Restaurants, Retail and Other Industries

While some industries have been able to slowly bounce back with fewer temporary closures, many are still enduring an increasing number of permanently closed businesses. The restaurant industry now reflects the highest total business closures, recently surpassing retail. As of July 10, there have been 26,160 total restaurant closures, of which 60% have permanently closed (15,770 permanent closures) — accounting for a 23% increase since June 15. Meanwhile, bars and nightlife, an industry 6X smaller than restaurants, have endured an especially high closure rate, with 5,454 total business closures, of which 44% are permanent closures (2,429).

Many retail businesses shifted their operating models and started offering curbside pickup and online ordering, unfortunately those measures aren’t always enough to sustain their businesses long term. Shopping and retail businesses have endured 26,119 total business closures, of which 48% are permanent (12,454 permanent closures). The data shows 1,544 retail businesses have reopened since June 15, however an even higher number have been forced to shut their doors permanently, accounting for a 29% increase in permanent retail closures in the last month. Both the beauty and fitness industries follow a similar trend as the retail industry with a decrease in temporary closures and an increase in permanent closures.

While many businesses are struggling right now, there are a few that have been able to withstand the economic downturn. Professional services such as lawyers and accountants are seeing fewer closures. Online services like web design and graphic design are also doing well during the pandemic as many businesses have shifted to remote work. Health services such as physicians, counseling and mental health services, and health coaches are also closing at lower rates – all critical resources during this time. Education businesses have also had success weathering the storm, including private tutors, as people look for resources to learn new skills and parents seek resources to supplement distance learning.

Consumer Interest Steadily Returns to Pre-Pandemic Activities

Consumer interest has continued to shift since May, but less rapidly than we saw in March and April. Interest for alcohol-related experiences has increased since June 1, relative to other food activities, with a rise in consumer interest for wineries (up 51%), cideries (up 39%), breweries (up 24%) and distilleries (up 19%). Meanwhile, grocery related businesses are on the decline as people spend less time at home. This includes beer, wine and spirit stores (down 21%), community supported agriculture (down 23%), and organic stores (down 11%).