Business Growth Through COVID-19

April 22nd, 2020
admin
blog banner

Many types of businesses nationwide have seen sharp decreases in overall sales – either they’ve temporarily closed their doors, are operating with online sales only, or have taken up a different business model to get by.  For other businesses, there’s been a sharp increase in processing volume.  Taking a snapshot of all processing volume by SIC code from February 1 – April 20, 2020, we put together an overview of which types of businesses are seeing an increase in sales and why.

Essential Stores:

Less restaurants means more home cooked meals.  Grocery store sales are up 56% with frozen food providers up 62%.  And what is a good meal without a drink?  Combined with being a home all day with the kids, it’s understandable that liquor store sales are up 65% followed by cigar store/smoke shops at 63%.  With so many layoffs nationwide, consumes are also being more money-conscious on their essential purchases, with discount stores up 416%, variety stores up 65% and pawn shops up 51%.

Home-Related Stores and Services           

More time at home means time to take care of renovations, updates, gardening and cleaning. Here’s just a few home-focused areas where business is booming:

  • Swimming pool sales and service always takes a jump in the spring months, but a 272% increase over a 50-day period is quite significant.  People are working from home and have the time and attendance to have a crew digging new pools.
  • Appliance store – homeowners are finally having the time to get that new fridge or dishwasher replaced – Appliances are up 165% with repair shops up 26%
  • Specialty Cleaning and Polishing – like most of us, being stuck at home 24/7 makes us focus on the dirt and grime in our everyday lives. Combined with spring cleaning fever and maid service, carpet cleaning, airduct cleaning, window washing. and the like are up 126%
  • DIYers and contractors both need tools for home renovations. – Equipment and tool leasing are up 31% and hardware store sales are up 56% and commercial equipment up 44%
  • Many are taking advantage of their time at home to install that new entertainment system or do a bathroom renovation.  Electrical and plumbing contractors have seen a 41% increase in sales since February 1.
  • Spring brings out the gardener in all of us of course, but this year we’ve seen a huge jump in sales (410%!). followed by florist/nursery businesses at 132%

Leisure Activities

Not all expenditures are work-related.  Without places to go and people to see, consumers have picked up old or new hobbies or are investing in other ways to spend their time.  Art and craft supply stores are up 35% and camera/photo supply stores are up 70%.  Despite many state park closures, camping and trailer park sales are up 24%.  One hobby that clearly lets you social distance is boating – with dealerships seeing a 174% increase in sales. The biggest increase for hobbyist sales have come from bicycle sales and repair shops at a whopping 1109%.  When we consider that larger cities have banned uber, it makes sense that this is where consumers are investing their transportation dollars.

The Direct Effect

Other areas seeing an increase in business that draws clear lines to the COVID 19 epidemic is that of Management/PR services – with everything going on, companies are hiring communications professionals to keep touch with their employees and customers.  Sadly enough, crematories and funeral services have also seen a 40% increase in sales.

What does this mean for credit card processing professionals?  Think outside the box.  If you aren’t in these industries yet, now is a good time to do your research and start reaching out.  Businesses that aren’t doing well now will be looking for cost saving solutions when they do open their doors in a few weeks – giving you the perfect opportunity to introduce PayLo Service Fee Processing.  The SignaPay Partner Portal has an entire suite of marketing materials for every business type to choose from.  Send emails, mailers, videos and more.  If you are not yet a Partner with us, feel free to call 877-751-2891