2020: Some businesses thrived, many lagged
By March 23, Apple had lost $ 435 billion in market value in about five weeks and many of its retail outlets were shut as the virus pandemic walloped the global economy and stock markets. Meanwhile, a report issued by the National Bureau of Economic Research found that 2% of small businesses surveyed had shut down permanently in March.
On Dec. 30, Apple’s stock market value totaled $ 2.29 trillion, up 133% since March 23. Meanwhile, Congress has approved nearly $ 300 billion in additional relief for small businesses, money that many hardhit owners only hope can help them survive until the pandemic finally eases
The success of Apple and other big technology companies and the struggles of the smallest of businesses is just one example of how the pandemic created winners and losers in the business world in 2020. Wall Street recovered after March; Main Street is still struggling.
What follows is a look at those businesses that benefitted from the pandemic and those that faltered.
First, the winners
Big tech: Big Tech was the big winner by far of the pandemic. Lockdown orders accelerated the big shift in life online that had already been underway. Apple, Microsoft, Amazon, Facebook and Google’s parent company now account for roughly 22% of the S& P 500 by themselves.
Streaming services: As movie theaters closed and lockdowns descended across the country, people turned to the ever- growing number of video streaming services for entertainment. Among the new services launched were NBCUniversal’s Peacock and WarnerMedia’s HBO Max. Netflix was a big winner, adding 28 million subscribers through the first nine months of the year.
Delivery services: As people hunkered down at home because of the coronavirus, restaurant delivery companies that were merely convenient in 2019 became essential businesses in 2020. Grubhub’s revenue jumped 36% through September as more restaurants started using app- based delivery services to survive full or partial shutdowns of their dining rooms.
Home workouts: Fitness regimens shifted from the gym to the home in a big way during 2020. Interactive fitness bike maker Peloton was one of the biggest winners of the workout- from- home trend.
Pet supplies: More homebound Americans got pets during the pandemic, and investors have taken note. Sixty- seven percent of U. S. households now own a pet, according to the 2019- 2020 National Pet Owners Survey by the American Pet Products Association, up from around 56% 30 years ago.
The laggards
Travel: Travel for work and leisure evaporated in 2020. Planes were empty and airports were ghost towns. Far fewer people needed hotel rooms as well.
Small business: Restaurants, hair salons, event planners and other businesses that rely on people being in close proximity were particularly hard- hit, as were those tied to tourism.
Business attire: Untuck it? More like don’t even wear it. A sizable chunk of the millions of people forced to work from home by the coronavirus pandemic have been less inclined to wear business attire. According to retail industry analyst NPD Group, sales of men’s suits fell 62% from March to October compared with the same period in 2019.
Real estate: Commercial real estate has been among the industries hardest hit by the pandemic, and there are doubts about how quickly it will recover. Vacancy rates for retail, office and other property types are up sharply from a year ago. Apartments are bucking the trend.
Fossil fuels: The oil industry was pummeled after travel was halted in efforts to contain the coronavirus, sending demand for jet fuel and gasoline plummeting. Producers were already struggling before the pandemic struck. The oil, gas and chemical industries laid off 107,000 workers over the spring and summer, according to a Deloitte Insights study. Oil giants Exxon Mobil, Chevron and others curtailed spending and slashed their workforces.