Jobless claims hit level not seen since October
California jobless claims rose to their highest level in three months as coronavirus-linked woes continue to hinder the state’s economy.
Workers filed about 67,500 first-time unemployment claims in the week ending Jan. 15, an increase of about 6,100 from 61,400 claims filed the week before, the U.S. Labor Department reported Thursday. The labor agency uses estimates from the state’s Employment Development Department.
The increase marked three consecutive weeks that initial unemployment claims have risen in California. The statewide jobless claims figures weren’t adjusted for seasonal volatility.
The last time claims in California were higher was the week ending Oct. 16, when workers filed 72,900 initial claims for benefits.
Nationwide, unemployment claims totaled 286,000 last week, an increase of 55,000 from the claims that were filed the week before in the United States. These nationwide numbers were adjusted for seasonal volatility.
U.S. begins offering free at-home COVID-19 tests
The Biden administration launched its website last week for Americans to request free at-home COVID-19 tests.
The website, COVIDtests.gov, includes a link for Americans to order four athome tests per residential address, to be delivered by the U.S. Postal Service. It marks the latest step by President Joe Biden to address criticism of low inventory and long lines for testing during a nationwide surge in COVID-19 cases because of the omicron variant.
The website went online Tuesday, one day ahead of its official launch.
The White House said “tests will typically ship within 7- 12 days of ordering” through USPS, which reports shipping times of one-three days for its first-class package service in the continental U.S.
Officials emphasized that the federal website is just one way for people to procure COVID-19 tests, and shortages of athome test kits have shown signs of easing as more supply has hit the market.
Since Jan. 15, private insurance companies have been required to cover the cost of at-home rapid tests, allowing Americans to be reimbursed for tests they purchase at pharmacies and online retailers. That covers up to eight tests per month.
Amazon plans to open brick-and-mortar clothing store
While retail has seesawed from open to closed amid the pandemic, Amazon was plotting another first: a brick-and-mortar clothing store.
The online retailing giant said Thursday that it plans to open a clothing store in a Southern California mall later this year. It’s the latest foray into brick-andmortar business for Amazon, which already sells more than 10% of all clothes in the United States.
The store, which will sell women’s and men’s clothing as well as shoes and other accessories, will open at Americana at Brand in Glendale. The entry into malls could become another threat to traditional clothing sellers because of the data and shopper insights Amazon may gain, experts say.
Shoppers at the Amazon Style store can browse items on display and scan a QR code to see sizes, colors and customer ratings. Shoppers can send items to fitting rooms or directly to the store’s checkout counter. Once in a fitting room, customers can request other items using a touchscreen.
Amazon unseated Walmart as the largest clothing seller last year during the pandemic as more people began shopping online.
Nearly half of the 50 senior retail executives Deloitte surveyed across multiple subsectors from Oct. 29 through Nov. 9, 2021, expect a shortage of skilled workers for IT and analytics positions — key roles needed for the reset.
Technology and automation
With staffing in question, retailers should invest more heavily in technology and automation to reduce their reliance on physical labor, the report recommends. More than half of the leaders surveyed believe stafffree stores will be common within the next five years.
That trend is already reflected in Amazon’s Just Walk Out technology, which is in place at some of the company’s grocery stores in Southern California. The Amazon Fresh markets have staff on hand, but they also offer a digital option allowing shoppers to enter the store, grab what they need and leave without going through a checkout line or self-serve kiosk.
“The (labor) shortage is compounded by the fact that retail is competing against virtually every other industry for talent,” Deloitte said. “Retailers need to solidify why they are more attractive than big tech for high-demand workers.”
Changing consumer behaviors
The report also notes that current supply chain networks are struggling to keep pace with the way consumers shop.
People have become “merchants in their own right,” the analysis said, buying from a broad range of retail channels via their social media accounts, reselling used goods through digital platforms and setting the terms for how purchases arrive on their doorsteps.
“Forward-thinking retailers should strive to automate their processes as much as possible and consider making significant investments in automated driving technology and last-mile delivery,” the report said.
Sixty-seven percent of the executives surveyed cited ecommerce and online shopping platforms as top investment areas, yet only a quarter plan to make major investments in data privacy and security.
That could be a costly mistake.
A 2021 study from Sophos found that the retail industry was hit the hardest by ransomware, with 44% of retailers attacked globally. As retail increases its digital presence — from cashierless stores to drone deliveries — the attack surface expands.
“Cybercriminals were quick to exploit opportunities presented by the pandemic, which in the retail sector was primarily the rapid growth in online shopping,” the Sophos report said.
Smaller retailers can’t compete with megaplayers that use their data to maximize supply chain efficiencies, Deloitte said, but they can boost their efficiency by sharing data with suppliers who otherwise might not know what products they expect to sell or discount in the future.
As one Deloitte expert said, “There can be no secrets anymore. Not sharing information is just detrimental to everyone.”
and less friction?
AA big part of the problem is that twothirds of people that are buying are also selling. Americans are equity-rich and cash-poor. So you play the chicken-and-egg game of do I sell my house first and move?
You can sell your house right now in literally three days, give or take. But then you’d be homeless. And you’d still have a mortgage contingency, and you’d be outbid by somebody else that doesn’t have one or doesn’t need one.
QAAnd how do you create liquidity?
What we do effectively to create liquidity is we make all buyers cash buyers.
Our first product, which originally was called Trade In and now is called Home Swap, focused on taking the two-thirds of people who have a ton of equity in their home, but don’t have a lot of time and don’t have a lot of cash.
We let them buy their new home. We lend them not only a mortgage but all the money they need for a down payment and to repair the old home. And what we do, effectively, is send them into the market with their real estate agent as an all-cash, institutional buyer. And then they can win bidding wars.
We’re using data science to underwrite not only you, but your old home and lending the money out of your old home so can buy your new home and move in. And as soon as you move out, we basically have our contractors come in and get the old house ready to list, and you get 100% of the upside.
Power buyers provide a solution in today’s busy market for home shoppers who keep getting outbid because they have to sell their current home or have a mortgage contingency. But what happens if the market slows and it’s no longer as competitive to buy a home? Does power buyer demand dry up?
Let’s take 2008 as a worst-case scenario for the housing market. The year before that, 5 million houses got sold. In 2008, in the depth of the crisis, 41/2 million houses got sold. Ten percent less. Houses will always get bought and sold. People move. And people will keep moving.