Certain Businesses Thrive during the COVID-19 Pandemic
PolicyWire by AmTrust
2020 has been a challenging year for businesses in a variety of industries. Smaller, independent companies were hit especially hard, with the COVID-19 pandemic causing in statewide shutdowns across the country. As businesses began to reopen slowly, many still struggled to adapt to the required changes to daily operations that would help ensure employee and customer safety.
For instance, restaurants found offering delivery, curbside pick-up or outdoor dining options necessary to keep their businesses afloat. Brick and mortar retailers began offering online ordering and delivery so customers could still shop and receive their items right to their door, eliminating the need to leave their homes. There's no denying that the way companies do business has changed – and these changes will last long into the future, if not forever.
What Companies Benefit during the Coronavirus Crisis?
While the stories sadly continue to unfold about certain businesses laying off employees or closing altogether, the ongoing coronavirus crisis has not been all gloom and doom for every type of company. As far as what companies benefit from the coronavirus, examples include essential businesses like grocery stores and pharmacies who remained open to serve customers throughout the pandemic. These businesses have not experienced the financial hardships others have.
Some types of business have actually been quite successful during these unprecedented times. A closer look at some of the companies succeeding during the COVID-19 pandemic include:
Professional Delivery Services
With most businesses shut down and individuals staying home to help stop the spread of the virus in the spring, companies offering delivery services began to see an uptick in sales. The lockdown orders across the country resulted in a surge of orders to food delivery services companies, like DoorDash, UberEats and GrubHub. For many restaurants during this time, offering delivery services was the only way they could remain open for business.
Families looking for activities to stay busy turned to board games and puzzles. It's reported that one of the world's largest puzzle makers, Puzzle Warehouse, saw a 2000% increase in sales as compared to this same time frame in 2019. Additionally, video game makers have also been successful during the pandemic. CNN stated that Nintendo saw a 41% surge in profits, the company's highest increase in nine years.
Wine and Liquor Stores
In many areas of the country, wine and liquor stores were deemed essential businesses. Of course, alcohol is not a necessity, but it does offer a way for people to alleviate some of their stress and anxiety during challenging times. With more people staying at home, consuming alcohol may have become a way to help pass the time during the quarantine.
Home Improvement and Hardware Stores
CNBC reports that home improvement giant, Home Depot, saw a 4.21% increasein shares during the coronavirus crisis. In fact, home and garden online searches have risen by 140%. With people staying in their homes for longer periods of time, it's easy to start looking around and noticing all the small projects that need to be completed – and people have more time to work on them, too.
Drive-In Movie Theaters
Movies offer a few hours to escape from the reality of the pandemic. While traditional movie theaters were included in many of the statewide shutdowns, drive-in theaters were able to remain open for business to allow people that opportunity for escapism. As a way to safely practice social distancing, drive-in movie theaters are one type of business still generating revenue throughout the pandemic.
There is an array of companies that offer monthly or quarterly box subscriptions, offering everything from beauty products to coffee beans. A recent article reported that more than 22% of companies have seen subscription acquisition rates grow during COVID-19, with food and beverage subscriptions being the most in demand.
In-Home Workout Products and Services
Gyms across the nation were forced to close in the wave of COVID-19 shutdowns, leaving fitness buffs without a place to get their daily sweat on. Many Americans turned to creating home gyms to stay in shape during the coronavirus crisis, and yoga mats and resistance bands became some of the most purchased equipment. Additionally, companies like Peloton, who offer in-home workout products like bikes and treadmills as well as online workout programs, are also thriving. Peloton reported a revenue increase of 66%, and membership to their app increased by 30%.
Telehealth companies allow people to see their doctors from the comfort of home via a computer or smartphone. This is an especially critical option for individuals who may be at a higher risk for contracting COVID-19 if they become exposed to it in a medical facility. Telehealth visits have increased by up to 50% nationwide throughout the pandemic.
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