The pandemic is driving demand for retailers, consumer products companies and delivery companies, as people adjust their lifestyles and shopping.
Retailers are raising wages for cashiers and other workers so they can sell more toilet paper, water and other essentials.
Although sales increased 20% in March, the company said gross margins could decline for the rest of the quarter.
The story is similar to the media industry, Facebook’s traffic is skyrocketing but online advertising revenue is going in the opposite direction.
Amazon also said it is seeing an increase in online shopping while street stores are closed.
Delivery companies like FedEx and United Parcel Service are also seeing a boom in home deliveries.
UPS is seeing a home delivery boom in the US.
ShipMatrix, a shipping data analytics software provider, said B2B shipments fell 3% in the first three weeks of March 2020, while residential deliveries increased 7.2%.
For example, on a normal day, a UPS driver can handle all the orders that need to be delivered in Shelter Island (New York).
Last week, as New Yorkers flocked to summer homes on the island to avoid the epidemic, four UPS vehicles passed through every day to deliver food and necessities from retailers like Costco and Target.
`I’ve never seen this in my career,` said David Carew, a 40-year-old UPS delivery worker.
Delivery points at people’s homes increased dramatically, but some stops at companies, agents, and offices have disappeared.
FedEx and UPS workers could face layoffs if B2B deliveries continue to slow.
`We are flexing resources to meet changing daily demands across the air, freight and ground components of our network,` a UPS spokesperson said.
A FedEx spokesperson said the impact from the pandemic affects each contractor differently, depending on location, government restrictions and the type of business served.
Procter & Gamble can’t produce toilet paper fast enough, and demand for many of the company’s other products from Dawn dish soap to Bounty paper towels is surging.
However, according to analyst Bill Chappell of Bill SunTrust, many of these companies’ products only have temporary appeal, meaning consumers increase hoarding to avoid going out shopping for a long time.
In the US, toilet paper sales doubled in the four-week period ending March 21, compared with the same period a year ago, according to Nielsen.
Meanwhile, P&G’s high-margin staples like its premium skin care line SK-II, sold mainly in Asia and at airports, are not being bought.
P&G could suffer if the economy remains in a prolonged recession, as the company’s products tend to be expensive.
A CVS drug store in New York during the epidemic season.
Large pharmacy chains are seeing a surge in both in-store customers and online sales.
However, CVS Health, America’s largest pharmacy chain by revenue and stores, still warns investors that the epidemic will hurt business results.
CVS said costs have increased as more employees work from home with pay and additional cash bonuses and other employee assistance programs.