Business wins, losses of the pandemic

How some sectors fared during 2020

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. 21, Apple’s stock market value totaled over $2.18 trillion, up 121% since March 23. On the same day, Congress approved nearly $300 billion in additional relief for small businesses, money that many hard-hit owners only hope can help them survive until the pandemic finally eases.

What follows is a look at those businesses that benefited from the pandemic and those that faltered.

First, the winners:

Big tech

Big Tech was the 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. Never before have five companies been so dominant on Wall Street. At the start of the year, those five accounted for less than 17% of the index.

Streaming services

As movie theaters closed and lockdowns descended across the country, people turned to the evergrowing number of video streaming services for entertainment. Americans increased their time streaming by 75% in the second quarter from a year ago, according to Nielsen. Netflix was a big winner, adding 28 million subscribers through the first nine months of the year. And Disney+ gained 86.8 million subscribers in just one year, a bright spot for Walt Disney Co.

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 workoutfrom-home trend. Revenue during the first nine months of the year more than doubled to $1.9 billion. Subscriptions reached just over 1.3 million by September compared with 563,000 a year earlier.

Pet supplies

Sixty-seven percent of U.S. households now own a pet, according to the 2019-20 National Pet Owners Survey by the American Pet Products Association. That’s up from about 56% 30 years ago. San Diego- based Petco this month filed for an IPO. The details remain under wraps, but last year’s IPO by online pet supplies seller Chewy provides a drool-worthy comparison. Chewy’s stock has quadrupled since its 2019 IPO.

And the industries that lost ground in 2020:

Travel

On April 14, the Transportation Security Administration screened just 87,534 passengers at U.S. airports, down a stunning 96% from the same day in 2019. Southwest Airlines CEO Gary Kelly said last month that business travel was down 90%. Market data company STR said that at the end of October, U.S. hotel occupancy for the year to date averaged 45%, down from 66% for all of 2019.

Small business

Restaurants, hair salons, event planners and other businesses that rely on people being in close proximity were particularly hard-hit. In April, payroll provider ADP reported nearly 20 million jobs were lost at U.S. companies, more than half at businesses employing under 500 people. A government relief program helped by giving out more than 5.2 million loans to small businesses and nonprofits between April and August.

Business attire

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. Consumers are “using active apparel for everyday purposes, which does not always include exercise,” said NPD analyst Maria Rugolo.

Fossil fuels

The oil industry was pummeled after travel was halted, sending demand for jet fuel and gasoline plummeting. As the virus spread and Saudi Arabia and Russia mounted a price war, oil prices plunged. Prices languished around $ 40 a barrel for months, well below what most producers need to break even. The oil, gas and chemical industries laid off 107,000 workers over the spring and summer, said a Deloitte Insights study.