What businesses thrive during a pandemic? These 5 industries are booming in Fresno
The coronavirus pandemic has been brutal on business.
Some Fresno-area businesses have closed already and more probably will too.
But in a twist, certain segments are actually doing well during this pandemic – some of them astoundingly well.
They paint a picture of how COVID-19 has affected our lives.
When Fresno first went under shelter-in-place restrictions in March, small retailers had to close, but many big-box stores could stay open because they sold food or other essentials. Many people also turned to online shopping.
And as dining indoors, going to movies and other forms of entertainment involving crowds were restricted, people spent their dollars elsewhere.
Here’s a look at some businesses and industries that have thrived during the coronavirus pandemic.
Pizza delivery. With dining rooms closed and pizza an easy option, some pizza chains known for delivery are killing it. Domino’s, for example, had its strongest quarter in nine years, according to Nation’s Restaurant News.
The company is hiring 20,000 workers nationwide to keep up with demand. Hungry Howie’s also hired thousands of additional delivery drivers back in April.
Lumber stores. White Pine Lumber on Blackstone Avenue has been busy lately. How busy?
“Very busy. Extremely busy,” said president Jeff Perritte. “At least 30% busier than an average year.”
The business is selling lots of lumber as customers build raised planter boxes and fences, install molding and work on other home improvement projects.
Perritte said he’s not sure if it’s because people are stuck at home more and are doing more home projects. Or because they have more spending money because they’re not traveling or dining out – or all of the above.
Regardless, it’s not just White Pine.
Everybody in the industry is busy, said Perritte, which has also led to an increase in prices.
Home Depot raked in $4.3 billion in earnings during its second quarter this year, a 25% increase compared to the same time last year. Lowe’s had a surge in earnings, up 29% to $2.8 billion in its second quarter.
Best Buy. Best Buy’s online sales for its second quarter rose 242% – yes, that’s 242 – when compared to the same time last year. Its overall profits increased too.
More people bought online as they couldn’t buy in stores when nonessential businesses were closed – or didn’t want to once they reopened.
Best Buy also shifted to a curbside pickup model where customers bought online and picked up in the parking lot. That option meant brisk business at the Fresno store.
So what did people buy?
Appliance sales rose 14.5%, with people either doing more home projects like kitchen remodels or using their stimulus checks to replace appliances, according to GlobalData, a market research company.
And with millions of employees and students switching to working from home, sales of computers and mobile devices rose 11.7%.
Sellers of yoga leggings. Lululemon, a top seller of $98 yoga leggings, saw its online sales rise 157% in its second quarter. Athleta, which is owned by Gap and sells leggings and other workout and lounge wear, saw online sales grow 49% in the quarter ending May 2.
Not all those people buying leggings are actually doing yoga in them.
Women working from home are turning to comfortable leggings, likely pairing them with professional tops for office Zoom meetings, according to a Washington Post story. They are ditching jeans, sales of which are suffering, with Levi Strauss & Co.’s sales numbers tanking 62% in the second quarter.
Bike shops. What do people do when they can’t go out to eat or socialize with friends? Ride bikes, apparently.
Bicycle sales have been booming, with the industry as a whole seeing 2.5 times the demand originally projected for this period, said Rich Holdsworth, co-owner of Rubber Soul Bicycles in Fresno.
The bike shop at Blackstone and Nees avenues closed for two weeks during the initial shelter in place, and reopened on April 1.
“It was like every day was Black Friday,” he said. “That lasted through the first week of September.”
People are buying and repairing bikes. Smoke from the California wildfires slowed business a bit, but it’s still going strong.
But Holdsworth is clearly uncomfortable celebrating this boom in business when he sees the nail salon and the restaurants in his shopping center hurting: “Yeah, there’s a pretty big disparity. It’s kinda sad.”
This story was originally published September 29, 2020 at 9:28 AM.
