The same forces widening the gap between sectors are also amplifying differences within sectors, mostly because the winners are pulling ahead. In every single sector, including those facing significant industry headwinds, some companies increased their market value during the course of the crisis (Exhibit 4).
For example, while the restaurant industry has struggled mightily during the pandemic, Domino’s Pizza delivered total returns to shareholders (TRS) of 26 percent, thanks to its technologically advanced business model and its ability to quickly ramp up delivery. Likewise, Peloton, maker of internet-enabled exercise bikes, saw its shares’ value increase more than fivefold even as most traditional gyms have struggled under lockdowns. And while it may not be surprising that many online-first retailers did very well over the past year, some traditionally brick-and-mortar operators such as Target (TRS of 64 percent) managed to adapt and outperform even as the pandemic hammered the retail sector.
Author(s): Chris Bradley, Peter Stumpner
Publication Date: 10 March 2021
Publication Site: McKinsey