Ultimate Stocks: The woes of not being ‘essential’
If coronavirus has been beneficial for one thing, it is the state of my bank account. Five weeks (and counting) of lockdown means my spending has been reduced to food shopping – and that is it. Bars, restaurants and shops – the locales which usually consume a great deal of my annual salary – are closed. There is no need to buy new clothes when there are no events to wear them at, and most of the retailers are closed anyway.
Clearly, I am not alone. Spending has dried up during lockdown, while furloughs, job losses and immense economic uncertainty could stifle demand for non-essential items for many months to come. The retailers, pubs and restaurants are facing a very uncertain future.
And their pain is being shifted up the supply chain to the manufacturers of non-essential consumer goods. In part three of our Ultimate Stocks coronavirus assessment, we examine the challenges facing L’Oreal, LVMH and Diageo.…
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