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The 3 Powerhouses of Retailing

The Corona Virus has become devastating to just about all businesses. But in certain industries. A few huge names continue to grow their wealth. Walmart, Costco, and Amazon. These are the biggest names in retailing and when things got bad, many rushed to these stores to get supplies they needed. While many forgot about mom and pop stores, these multibillion dollar companies only grew.  Jim Cramer said that if stores do not open soon, then these are the only three retailers that will be in America. I think that is a little bit of a stretch. The fact of the matter is that many stores will close and there is just nothing anyone can do about that. However, people will go to other stores because these stores are going to be too crowded. These stores have all hit career highs during the Covid 19-pandemic and their numbers only project them to go up. All these companies will hire more people and give existing employees a raise. It is starting to sink in that this might be the new normal. I hope not. Could another retailer come into this market and compete with these companies. Could a merger come to place where it would hurt one of these powerhouses? We just have to wait and see what happens.

https://www.cnbc.com/2020/03/20/cramer-us-could-end-up-with-three-retailers-amazon-walmart-costco.html?__source=sharebar|twitter&par=sharebar

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Working from Home through Zoom

Could working from home be the new thing? Covid-19 has put so many people out of work, while others have switched from going into the office, to working at home. Communication will never be what it used to be because of an app called Zoom. Zoom is a platform that people can use to video chat large amounts of people at one time. With schools, employers, doctors’ offices, etc. closing, this is a way for people to interact and communicate. Overall since the pandemic started Zoom stock is up 42%, showing that they are capitalizing on a service that is truly much needed in a time where everyone has to keep their distance from one another. That is impressive considering the S&P 500 has had an overall drop.

More and more people are working from home as it is. It is cheaper for companies to have their employees work from home. That is why I think that Zoom could be a reason to keep employees home and not have a lot of employees on site. This could be an emerging market for other start up to figure what Zoom does not do or figure out a way to do it more effectively. It could also hurt new entrants because everyone is already using Zoom to communicate. It would be very tough for a company to join due to the fact that the customer loyalty is pretty high because it is very reliable.

 https://finance.yahoo.com/news/zoom-ceo-coronavirus-outbreak-change-140039425.html?soc_src=social-sh&soc_trk=tw

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Streaming Is Booming

Covid-19 has closed just about everything down. People are kept in their homes. They cannot go anywhere, do anything where large groups of people are present. One very popular thing that people do is go to the movies as a way to enjoy themselves. Since people cannot go they sit home and watch tv. With that being said the streaming industry has been booming. But one company in particular was already on the rise before Covid-19 hit, Netflix. Netflix was booming worldwide and continues to grow. In Ariel Shapiro’s article “Netflix’s Stock is Now Higher Than Before Coronavirus Hit U.S. talks about the success it has had. More and more subscribers are joining Netflix, which is boosting revenue overall to an all-time high. New categories are always improvement Netflix can make and they will always look to expand their content. I am curious to see if after the pandemic if the streaming industry will take a hit. Will people go outside more and watch less? Or will they be scared to go out and be in large crowds again?

https://www.forbes.com/sites/arielshapiro/2020/04/14/netflixs-stock-is-now-higher-than-before-coronavirus-hit-us-tiger-king/#57e53468d815 

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Could Going To A Bar Be A Thing Of The Past?

The American people are drinking more at home. Covid-19 may have shut many bars and restaurants down, but that has not stopped people from consuming alcohol. In the Article “Even Before Many Bars Closed, Americans were Drinking from Home” by Paul Hiebert statistics show that more and more people are spending less at the bars. People are going and buying cases at the distributor or other stores and taking it home. In early March (when Covid-19 first came around) statistics from Nielson support the claim that people are drinking at home instead of going out. According to Nielson, a research company, a study from 2019 vs. 2020 shows that beer sales increased by 2.3%, liquor sales increased 4.9%, wine sales also increased 1.7%.

https://www.adweek.com/retail/even-before-many-bars-closed-americans-started-drinking-from-home/

           Many reasons could be the cause of this and I believe that one of the major causes is that bars and restaurants are expensive to drink at. I will give a scenario. Say you go out in a major city, for example Philadelphia. You go out with a few friends after a stressful week. The group decides an Uber is the best thing to do, so no one is driving. You guys get to the bar and have 3,4,5 drinks. The tab comes and the bill could upwards of $50, sometimes more. That’s just on drinks, then you decide to get food and that is another $15-$20. That’s a $70 night. Now with this situation you realize that you can go to total wine or another distributor. You could buy a bottle or a case of beer for less and it will last a lot longer. You could even bring everyone over to your house and hangout for way less.

           This is a perfect time for distributors, to capitalized on the market. It would be a great time for them to expand their product selection and market to different groups of people. The younger generation love going out and spending money, which is good. But that generation of kids is a small market. Distributors should push for the millennial generation and the older generations, who actually have the money. It will be interesting to see what happens with the results of Covid-19. I am curious if bars and restaurants will ever be the same again. Will people feel safe and go out again in the numbers they were or will people continue to stay and drink at home? We all just have to wait and see.