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Consumer products M&A update: Q1 2020

With the country forced into work from home setups, e-Commerce and essential retailers are becoming increasingly important. Consumers at the same time are prioritizing comfort at home and staying healthy during this period of time. This consumer products mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC market data analysis that shed light on M&A trends in the consumer products industry.

Consumer products and retail trends

  • E-Commerce takes over:1 While many businesses are doing their best to market products online, it has been the 100 percent web-based businesses and brands that have truly seen their demand skyrocket. In North America, the number of online orders for web-only retailers were up 52 percent YoY in the last two weeks of March.
  • Apparel dresses down:2 Luxury apparel companies are doing their best to adapt, but are seeing the effects of the virus on items that would not show up in a traditional teleworking call, such as pants, shoes, etc. Casual clothing companies are seeing additional demand for their products, including leisure and athleisure brands that now transcend the typical boundary of office and home wardrobe.
  • Home improvement:3 People spending 24/7 at home has led to a boom in “fixer-upper” activity, as homeowners now have limited outlets to occupy their attention besides their immediate surroundings. Non-typical “essential” retailers are becoming increasingly important as demand for smaller home decor products skyrocket. Home Improvement retailers have also seen a boost for outdoor furniture and equipment, as consumers look to maximize and invest in their limited available outdoors space.
  • Health and wellness:4 The COVID-19 pandemic has resulted in a renewed cautiousness about health, prompting consumers to incorporate healthy tendencies to many areas of their lifestyles. From food and beverage choices to wellness supplements, more consumers are taking care of their bodies to help fight infection and stay healthy during this period of time. While sanitation products and medical supplies held the initial clamor of consumers’ shopping carts, many consumers are taking on long-term changes as they look toward maintaining health post-pandemic.

This newsletter is a periodic compilation of certain capital markets information. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.


1 “Online Buying Soars as Coronavirus Spreads Around the World” DigitalCommerce360, 8 April, 2020.
https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/, accessed on April 15, 2020.

2 “Coronavirus Shopping Trends: 8 Popular Product Categories Right Now.” Criteo, 8 April, 2020.
https://www.criteo.com/insights/coronavirus-shopping-trends/, accessed on April 15, 2020.

3 “Coronavirus: Fitness, home improvement may rebound quickly, data suggests.” Yahoo Finance, 16 April, 2020.
https://finance.yahoo.com/video/why-fitness-home-improvement-sectors-184052570.html, accessed on April 15, 2020.

4 “Nielsen: Coronavirus has CPG Shoppers Changing Their Ways” Supermarketnews, 11 March 2020. https://www.supermarketnews.com/issues-trends/nielsen-coronavirus-has-cpg-shoppers-changing-their-ways, accessed on April 15, 2020.

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