COVID-19 promotes changes in the way of buying

The coronavirus pandemic has had a strong impact on the world economy at an unprecedented rate.

The changes are not only in terms of what citizens buy, but also in what they consume, so the scope goes beyond individualism, and touches closely on businesses, large chains, banking, tourism and even the automotive industry.

The following is a summary of the day’s events related to the economic situation, jobs and the spread of the virus around the world.

Changes in purchases

The pandemic has changed the way people buy and what they buy.

Target said its online sales have almost tripled, while its activity in physical stores has decreased so far this April. The company reported that the sale of food and beverages has increased 20%, while that of clothing and accessories has fallen 20%.

For its part, the clothing brand The Gap stopped paying rent in North America and in other places where stores are closed and today she said she could soon run out of cash.

“We will have to take additional measures to preserve existing liquidity and look for additional sources, beyond the credits available for the next 12 months,” Gap said in a regulatory document.

Financial reports

For Hershey there was bittersweet news.

Baking supplies sales (such as syrup, baking chips, and cocoa) increased nearly 30%, while marketing of chewing gums has declined in these weeks of social distancing. Also, there are fewer people in the lines of the cashier in supermarkets doing last-minute shopping.

Hershey preferred not to disclose his financial projection today, citing current events.

Crocs expects even less revenue in the second quarter, anticipating that physical stores will continue to close in that period. The shoe maker said he is comfortable with the cash on hand. Crocs laid off workers at its retail stores in North America and cut senior executive salaries.

Unilever remains afloat because the drop in sales of ice cream and other foods has been offset by the increasing commercialization of cleaning materials.

Airlines

Airlines are facing a financial crisis as the virus stopped almost all travel.

Pieter Elbers, CEO of the Dutch KLM, announced that he will reduce his salary by 20% until the end of the year. KLM previously announced that there would be no salary increases for its board of directors this year and postponed the payment of 2019 bonuses. Board members also renounced this year’s bonus.

International Air Transport Association estimates that travel restrictions due to coronavirus could cost European airlines $ 89 billion this year, compared to $ 76,000 he calculated in March. For airlines in the Middle East and Africa, the losses would be $ 30 billion, compared to $ 23 billion in March.

Indonesia will suspend all domestic and international passenger flights from June 1. It applies to all services, both commercial and charter.

Thailand announced measures for airlines to resume domestic travel on May 1. Among other actions, airlines must assign skipped seats, maintain distances for check-in, boarding and disembarking, and must leave the last row of seats empty to isolate passengers with suspicious symptoms developed during the flight.

Crewmembers must wear gloves and face shields, while passengers must bring their own masks to wear at all times. Food and drinks will not be provided and passengers will not be able to bring their own for consumption during the flight.

Automotive companies

Auto plants in the United States remain closed and undated to restart production, in contrast to some factories in Europe.

British automaker Aston Martin Lagonda will resume production at its plant in Wales on May 5.

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