The picture for the retail industry at the midway point of 2020 is vastly different than any one of us could have predicted at the end of 2019. The global spread of the virus has brought a temporary halt to all non-essential trading in many parts of the world. The discretionary sector has seen a significant drop in revenue with closed stores and large numbers of staff on government furlough schemes or working reduced hours.
The grocery sector, on the other hand, is dealing with unpredictable demand and a huge increase in demand for online delivery services. For many companies the sharp economic shock has been exacerbated by operating very tight businesses that carried little cash. Add to this high fixed costs, and it becomes clear many in this sector are in a vulnerable position.