COVID-19 and the state lock-downs have hurt many businesses, but not all. Some companies have managed to do quite well while COVID-19 has spread throughout the country. These companies who came out winners are the big boys, like Amazon, Walmart, and Target. They have actually seen growth due to the pandemic and the following lock-downs. People do not feel safe to go out and purchase things, so they rely on online retail. That is where these mega corporations have been raking in the profits. Not only are they raking in the profits, they are raking in new hires. Amazon announced that they wanted to hire 175,000 new employees, even while unemployment numbers are through the roof. But not every winner is winning equally. Although Amazon is doing well, they have had some issues with their supply chain. They have been having issues keeping things in stock and delivering Prime items within two days. This has led to Target and Walmart to regain some lost ground in the online retail market-share. So, in conclusion, COVID-19 has made some businesses losers, some winners, and some bigger winners. Not every one has been hit equally during this pandemic and recession.
This is also emphasizing the struggle small businesses have been having the past few months.Large companies like Walmart, Target, and Amazon were already strides ahead than everyone else, and now there will be an even bigger gap between the success of those companies and smaller ones. One question is whether these large corporations will continue to grow not that other things are opening up or not.
ReplyDeleteWe look at the current situation due to the pandemic and often forget that anyone could be doing well. Along with retail giants like you mentioned, online food ordering has sky rocketed. It has also forced many companies to improve their online ordering options in order to salvage anything from these tough times. I think these advancements in options will continue to be beneficial for companies even after the pandemic has passed.
ReplyDeleteWhile I agree with your overall analysis of this article, there is another huge reason these 3 specific companies have seen growth above having online retail systems in place. Walmart Target and Amazon have established online retail markets, but they are also known for their low prices. Target and Walmart are historically known as very safe investments even in recessionary periods because as GDP drops more and more people will flock to cheaper options in consumer goods, which both Target and Walmart have. Amazon has a wide range of products and a variety of products, not to mention being the leader of online retail.
ReplyDeleteOver the past summer, I had the opportunity to work for Northwestern Mutual in a financial advisor role. As a financial and insurance services company, they were doing very well during the pandemic. I am very proud of the work myself and my coworkers were able to accomplish from home, and as a whole NM was investing heavily into the market throughout this pandemic. Obviously as a service company and one in which individual advisors were able to adapt to working from home easily, it was in a good position to not struggle during these times.
ReplyDeleteTwo other companies who also have performed really well during the pandemic include Clorox and Peloton. Clorox overall sales jumped 15% for the first quarter. Sales of Clorox’s cleaning segment, which includes its wipes and beaches, jumped 32%. This is due to the fact that consumer demand for sanitizing products is so high. Peloton's revenue grew 66% and membership for its app rose 30%. This is due to the fact that that gyms have been closed across the country and people are in need of a way to get their cardio in at home.
ReplyDeleteI agree that their are covid winners and we where already seeing a trend towards more stores having online options but now i believe we will see stores have an even greater push towards this necessity to have an online store front for convince and now safety.
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