Since the beginning of the COVID-19 Pandemic, a variety of stay-at-home orders, shutdowns, and restrictions have negatively impacted many businesses. Restaurants, gyms, and airlines are just a few examples of industries that have struggled. However, with a major change to our daily routines, some companies have profited and seen growth compared to previous years.
Below, we look at a few industries that have seen an uptick in sales in 2020.
Cleaning Products
Cleaning products have been in high demand for personal and industrial use. Almost all businesses that remain open have sharply increased their cleaning procedures, and individuals are using hand sanitizer and disinfectant products daily.
According to Fortune.com, Clorox saw a 22% increase in sales in Q2 2020 compared to Q2 2019. This spike in sales also increased their brand’s popularity, which could have long term effects once the pandemic subsides.
Streaming Entertainment Services
With in-person entertainment options like movie theaters and theme parks closed, online streaming services have been getting more attention and have seen growth in subscribers. In a recent Forbes article, it’s revealed that Netflix gained almost sixteen million new subscribers in Q1 2020. As of November 27, their stock was priced at $491.36 per share, up from $329.81 on January 2.
Other subscription-based streaming companies saw similar results. Statista details how Hulu’s subscribers increased over five million by Q3 since the beginning of the year. Also, while The Walt Disney Company’s recent reorganization to focus on streaming services may have been a long term goal, their CEO, Bob Chapek, explained to CNBC that “COVID accelerated the rate at which we made the transition….”.
Food Delivery Services
While the restaurant industry has been hurt with COVID-19-related restrictions, food delivery companies have seen a higher demand for their services. Since many indoor dining rooms are closed, customers are opting to have their meals brought right to their door.
According to an article on RestaurantBusinessOnline.com, food delivery company DoorDash saw sales up 110% in May compared to the beginning of the year. They also noted that another company, Grubhub, had an increase in order size of 20% from the previous year.
If your business is experiencing growth and is in need of financing, such as a line of credit, we are here to help. Contact one of our local experienced bankers to discuss personalized solutions for your business that may be available.