COVID-19 spurred a seismic shift in buying behavior and fast-tracked years of change in the way companies across all sectors and regions do business. U.S. Commerce Department data reveals that consumer spending through non-store channels grew more than 30% in November 2020 when compared to November 2019 — the second-highest rate of any month since the agency began publishing data in 1992. In parallel, U.S. retailers experienced a boost of $152 billion in e-commerce sales in 2020.

As consumers overwhelmingly shifted their spending toward online channels during the pandemic, business owners had to pivot more quickly than they ever imagined. At the same time, Black business owners found themselves disproportionately affected by pandemic-linked business impacts. A recent study conducted by the JPMorgan Chase Institute found that Black-owned businesses often experience lower revenues, smaller profit margins and more limited access to cash. Between February and April 2020, more than 400,000 Black-owned businesses were shuttered and 41% of those permanently closed their doors. Furthermore, Black founders were also less equipped to handle mandated closures during the pandemic and had less access to relief, with about 58% of Black-owned businesses at risk of financial distress even before the pandemic and in many cases, unprepared to shift their business strategy and operations to meet the e-commerce experience consumers demanded.

Alton McDowell

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