Distributor Weekly Pandemic Revenue Index (PRI): June 1-5, 2020

Written by Mike Emerson on Tuesday, 09 June 2020. Posted in Pandemic Revenue Index

Each week, we’ll be tracking a snapshot of year-over-year distributor revenue with our Pandemic Revenue Index (PRI). The sample size for the week of June 1-5 is 10 firms, which is the same as last week.

After our first non-negative week, the index has again shown a sales decline with sales dropping 1.4% compared to the same week in 2019. We now have two consecutive weeks where sales are hovering around flat after nine weeks of double-digit declines.

IRCG Pandemic Revenue Index June1 5 2020

While two points does not make a trend, we’re considering the external circumstances where states are loosening restrictions on business activity. That, plus a surprising jobs report for May, just might signal that we’ve turned the corner on phase one.

Trending activity

After collecting data for 11 weeks now, we have seen some trends emerge. The distributors that seem to be suffering the greatest losses are those whose customers are unlikely to be considered essential businesses, per state and local definitions, and those more focused on maintenance repair and operations (MRO) markets. This would make sense as businesses that aren’t open aren’t buying products. With general output down, there is less need for repair and maintenance products.

As we collect more experiences, we will continue to share patterns as they emerge.

Note: We would like to increase our sample size for our Pandemic Revenue Index and are asking you to consider helping the industry through these uncertain and unprecedented times. If you are interested, reach out to Mike Emerson, at memerson@ircg.com.

About the Author

Mike Emerson

Mike Emerson

Mike Emerson has been a IRCG partner since 2004. Mike joined Indian River in 1998 and has worked with hundreds of distributors and manufacturers of all sizes and within many lines of trade.

As a Partner in the firm, Mike has managed a broad array of projects. His main focus areas include: compensation design, strategy facilitation, market research, and data modeling and analysis.

Mike writes extensively on distributor and marketing channel topics and is frequently quoted on contemporary issues. He has authored four books, published by NAW: What’s Your Plan? Smart Salesforce Compensation in Wholesale Distribution, Working at Cross-Purposes: How Distributors and Manufacturers Can Manage Conflict Successfully, Value Creation Strategies for Wholesaler-Distributors and What’s the Right Plan? Effective Sales Incentive Design for Wholesaler-Distributors. Mike is also a university lecturer on marketing topics.

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