(Reuters) – Consumers who stay close to home as COVID-19 cases increase worldwide are looking for more staples like mayonnaise and peanut butter and buying Roomba robotic vacuum cleaners and computers.
FILE PHOTO: A variety of peanut butter made in the USA on display at the “American lifestyle” store in Berlin, Germany, on August 13, 2018. REUTERS / Fabrizio Bensch / File Photo
As companies report quarterly earnings and look into the second half of the year, the winners and losers of the pandemic are becoming more apparent. Companies that sell electronics, comfort food, and other household products continue to benefit from quarantines and lockouts.
“Being at home, or at least outside of their normal routines, most of the day, consumers embrace technologies that improve their lifestyle at home, whether through entertainment or assistance with housework,” said Daniel Binder, partner at Columbus Consulting, a firm that advises in the retail sector.
This week, electronics retailer Best Buy Co Inc (ABY.N) said its online sales more than tripled in the current quarter through July 18, while total sales increased approximately 15%. And the maker of Roomba iRobot Corp (IRBT.O) noted significant growth in demand for their robotic vacuums that can cost $ 800.
Roombas, which can speak more than a dozen languages, including Chinese, automatically glides around rugs and floors, sucking up crumbs, dirt, and pet fur. Maintaining a clean home has become even more important in the pandemic, Colin Angle, chief executive of iRobot, said Tuesday in the company’s earnings report.
Shares of Best Buy, the Minneapolis-based retailer, climbed to a record $ 99.42 on Wednesday, after the company reported strong sales of computers, tablets and home appliances to consumers and students homebound. Almost all of its stores had reopened to shoppers as of Wednesday.
“People see getting a Roomba to clean their houses or upgrading to the latest iPhone as a way to regain some sense of control in their lives,” said Dave Marcotte, senior vice president of Insights at retail consulting and analytics firm Kantar.
UK-based home improvement retailer Kingfisher Plc (KGF.L) reported on Wednesday an exceptionally strong demand for DIY and gardening products. The locks drove a 21.6% jump in sales at the same store in the second quarter.
GOOD FOOD
JM Smucker CoSJM.N), which produces Smucker jams, Jif peanut butter, and pet food, raised its dividend at a time when many companies are cutting payments to save cash. In June Smucker said he was still waiting for shoppers to eat more at home.
Global consumer products company Unilever Plc (ULVR.L) On Thursday they noticed strong sales of Breyers, Magnum and Klondike ice cream, along with Hellmann’s mayonnaise and Knorr soups.
“We see no signs of slowing down in North America,” company chief executive Alan Jope told analysts.
A new wave of amateur bakers has led to a more than 40% increase in sales for Hershey Co (HSY.N) chocolate chips and cocoa powder that are used in cakes, cookies and other desserts.
The chocolate maker said Thursday that it expects sales to accelerate in the coming months.
By contrast, jeans maker Levi Strauss & Co (LEVI.N) said Tuesday that its executives will continue to work at reduced wages until the end of August, citing the economic impact of COVID-19.
Levis, affected by the store closings, said on July 7 that sales fell 62% in the second quarter.
Reports from Uday Sampath Kumar in Bangalore; Additional reporting and writing by Anna Driver in New York; Editing by Matthew Lewis
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