It is safe to say that coronavirus has shaken the world. Millions of people are scared to leave their houses and are even more scared for what comes next. Americans are stocking up on household items like the apocalypse is coming. Because of this, some brands’ sales have skyrocketed, whereas others are seeing a great decline. What comes next for these brands is still a mystery, but here are some brands that have been affected so far.
Clorox, Lysol, and Purell
Coronavirus is highly contagious, causing consumers to stock up on various disinfectant products. The most popular brands being Clorox, Lysol, and Purell. Store shelves have been swiped clean of all these brand’s products, including hand sanitizer, wipes, and soap, making it almost impossible to purchase them anywhere, including online. A large part of this problem is many people are buying these items in large amounts, which they then sell for a higher price online. Two brothers, Matt and Noah Calvin bought 17,000 bottles of hand sanitizer and quickly began selling them online for anywhere between $8-$70. After over 300 sales, Amazon and Ebay shut them down. Stores have been limiting the amount of disinfectant products one can purchase in order to make sure each American can have access to any products they may need. The demand for the products is so high that brands like Clorox, Lysol, and Purell are doing exceptionally well with sales like never before.
Another brand that is doing exceptionally well because of Coronavirus is Amazon. The Centers for Disease Control and Prevention (CDC) has advised everyone to stay home as much as possible and only go out when it is absolutely necessary. People are turning to Amazon to buy almost all necessary items, including groceries and cleaning supplies. Amazon has nearly every item imaginable and ships online as quickly as possible. On top of its convenience, some of Amazon’s top department store competitors, like Nordstrom and Macy’s, are closed indefinitely. Amazon’s share price has reached an all time high and its market cap has reached $1.1 trillion. To help during this global pandemic, Amazon is said to raise factory workers’ wages by two dollars and has started developing COVID-19 tests that can be done at home.
Americans all across the country have been advised to stay at home until the CDC announces it is safe to return to work, school, etc. With people bored and at home all day, online streaming services are doing exceptionally well, specifically Netflix. Even with the stock market crashing, Netflix’s stocks have risen by 5%, reaching its second highest peak since the brand first became public in 2002. Wall Street expected Netflix to have an additional 7.2 million new subscribers this quarter, but with the global pandemic, Netflix surpassed that by adding 15.77 million international subscribers. Brands like Hulu and Disney Plus are also seeing an increase in viewers but Netflix seems to be doing the best amid this pandemic.
With the good comes the bad. While some brands are doing exceptionally well during this time, others may not financially recover.
Macy’s had big plans for 2020 to improve and turnaround, but since the unexpected pandemic struck the United States, Macy’s has hit an all time low. With Macy’s considered a non-essential business, the company is sticking to online purchasing only, losing a majority of their sales. CEO Jeffrey Gennette is desperate to keep the business alive and is taking many actions including, suspending the quarterly dividend, reducing worker’s wages, deferring spending, and drawing down its credit line. The once powerful corporation is now doing anything it can to stay in business. Macy’s hopes to bounce back from this crisis but may not return as powerful a corporation as it once was.
Entertainment services like movie theaters are facing major problems. AMC Theatres, the largest cinema chain in the US is likely to file for bankruptcy. The business was already fragile before Coronavirus hit, as the company was facing $4.85 billion in debt. Not to mention, movie theaters are a dying breed. AMC announced in mid-March it was to close their theaters for 6-12 weeks in response to the CDC’s recommendation of closing all non-essential businesses nationwide. It is unlikely that the company will be able to recover from this, but AMC is doing everything it can to stay afloat. AMC has laid off 600 corporate employees, including its chief executive officer. AMC has also temporarily stopped all A-List memberships until the theaters open again. It is encouraging people to use their online streaming service, AMC On Demand. However, when theaters open to the public again, it will not be the same. Social distancing will limit the amount of people allowed in theater leading to a significant drop in revenue. On top of that, almost all films have been delayed so when the theaters reopen it is a mystery what films they will show. AMC and other movie theaters are in great times of struggle but this may bring a positive light to the drive in movie theater business.
While restaurants are permitted to provide delivery and takeout, they are still facing great financial challenges due to a lack of inside dining. The Cheesecake Factory is one of these restaurants. The corporation recently announced it will not be able to pay its April rent at almost all its locations. It has also laid off 41,000 hourly employees and cut the CEO and other executives’ pay by 20%. The company encourages take out and curbside delivery to the public. The Cheesecake Factory has plans to bounce back from this crisis and open for business as soon as possible, but it will be a challenge for sure. This is because businesses will have to open gradually and will have to ease into operating at full capacity. Restaurants will likely need to limit the amount of customers allowed inside and spread tables farther apart. Waiters will likely wear masks and disposable menus will likely be utilized. Returning to “normal” will be a slow process for the Cheesecake Factory but it is not yet looking into bankruptcy.
Every person and brand has been affected by this global pandemic. No one is sure for what is to come next but brands are doing their best to keep others safe while also staying in business. Time will tell for these companies and their future. For right now, they have all agreed the safety of the public is more important than money and numbers.