24 Mar 2020
Posted in Technology
Coronavirus creates positive outlook for some ecommerce companies, says GlobalData
The coronavirus (COVID-19) will put incredible strain on the world’s economy, which will be effectively halted for three months or more, and many companies will not survive this initial phase. However, COVID-19 will have a long-term positive effect on the ecommerce sector, with even skeptical consumers forced to abandon physical stores in response to restrictions on movement, says GlobalData, a leading data and analytics company.
GlobalData published a fully revised report, ‘Tech, Media & Telecom Trends 2020’, report to reflect the impact of COVID-19 on 17 separate TMT sectors and the leading companies within. It discusses the short and long-term impacts of COVID-19 on each sector, and ranks on a company-by-company basis the individual impact of COVID-19 alongside nine other themes that affect that sector.
Ed Thomas, Research Director at GlobalData, says: “The impact of COVID-19 will be most noticeable in the food and grocery segment, where online penetration is currently lower than average across the retail sector.
“While food and grocery sales surge, clothing and footwear retailers will suffer as consumers are forced to work from home, events are cancelled, and pubs and restaurants closed. Online channels will fare better than high-street stores, but retailers such as ASOS and Boohoo will still see a significant reduction in sales.”