As economic activity gathers pace, we desperately need biotech to pick up the baton as a string of companies and countries seek to develop a vaccine. To a degree though the science and logistics already has. Talk of a second wave as we move closer to winter should make us less fearful than last year as the health system is now far better prepared to react. However, until a vaccine arrives, it is clear certain sectors will remain under greater pressure, but it is often this pressure that accelerates new plans or fresh initiatives.
There are plenty of examples of this in recent history. Take WH Smith. When the internet first took off allowing music and books to be delivered by post, and eventually virtually, WH Smith was forced to reinvent itself as a travel hub business, shifting its focus to airports and gradually reducing its reliance on the high street. Although notably with the recent travel lockdown, it may be time for a refresh once again.
Though the structural change has been happening for some time, could the more recent crescendo of devastation on the high street force a more rapid re-think at Marks and Spencer, led by Percy Pig? Covid has certainly accelerated the pace of change as the business restructures. But will this be successful?
The food brand is undoubtedly exceptionally strong in Britain and the decision to buy into a joint venture with Ocado brings the very best online tech. I’m sure there are many customers across the country who will love to have M&S adorn all of their pantry. While this is not the first-time new management have tried to modernise M&S, I believe if this team are able to slim down the clothing and non-food side of the business in a controlled way then this could be a turn-around for investors to back.
For those seeking staycation ideas as we move in September, I can highly recommend a trip to Hush Heath vineyard – an excellent day out and a chance to try some of our fantastic home-grown wines. There’s even a railway station nearby if you’re brave enough to take a train.
Leigh Himsworth is a fund manager at Fidelity International