Article 6.2 – The Impact of COVID-19 on Global and Local Brands
Kelly Laybolt*
The spread of COVID-19 has forced people around the world to drastically change their daily habits. As a result of public health recommendations that encourage people to remain at home, both global and local brands have altered their services to serve the consumer better and compete for their business. Many global brands provided online ordering and curbside pickup services prior to COVID-19; therefore, some of the adaptations these businesses were required to make were already in place. The transition was more difficult for most local brands to adhere to COVID-19 recommendations as many did not have an online store or an app and required communication between the buyer and the seller. Unfortunately, some local businesses have had to close their doors due to the pandemic. The Paint Lake Lodge announced on November 5th that they would be closing their doors until the winter snowmobile season as a result of revenue losses. Global companies, like Boston Pizza, are less affected by profit loss as they can absorb those losses, but may temporarily lay off employees to lower their decreased revenue.
There are also global and local brands that are maintaining sales or even profiting as a result of the say at home guidelines. Takeout and delivery only restaurants like Domino’s have had an increase in business during the pandemic. Domino’s reported that store sales “increased by 16%1 in the second quarter of 2020.” Local brands are also seeing an increase in sales during the pandemic. Jasyn Lucas has noted that although there has been a decrease in orders from galleries that carry his art, private sales are up.2 Therefore, although COVID-19 has resulted in nation-wide encouragement to remain at home, most global and local businesses remain open and successful during this pandemic.
1Brooke Henderson, “People Are Ordering More Pizza during the Pandemic and Domino’s Is Taking the Biggest Slice of Sales,” Fortune (Fortune, August 12, 2020), https://fortune.com/2020/08/12/coronavirus-food-trends-takeout-delivery-pizza-dominos-covid/.
2Jasyn Lucas, interview by Kelly Laybolt, November 14, 2020, Thompson.
Bibliography
Henderson, Brooke. “People Are Ordering More Pizza during the Pandemic and Domino’s Is Taking the Biggest Slice of Sales.” Fortune. Fortune, August 12, 2020. https://fortune.com/2020/08/12/coronavirus-food-trends-takeout-delivery-pizza-dominos-covid/.
*Please see article “The Commercial Relationship between the Local and the Global: Thompsonites’ Consumer Values” on page 55 for author’s biography, photo, and instructor’s remarks.