While the number of coronavirus infections in China has tapered off and retailers including Starbucks Corp. and Haidilao International Holding Ltd. have reopened more of their stores in low-risk areas, demand looks unlikely to rebound quickly as consumers remain hesitant to leave their houses after weeks of government warnings about the dangers of mingling with others.
(Mar 20): Almost half of China’s listed consumer companies don’t have enough cash to survive another six months, underscoring the urgent task Beijing has to re-start its economy and get shoppers spending again.
Restaurants are in the worst shape as the coronavirus outbreak has kept consumers at home, with about 60% unable to cover labour and rental costs, according to data compiled by Bloomberg and company reports covering 50 listed firms. Among jewellery and apparel companies, almost half don’t have the cash to last the six months unless demand rebounds sharply, the data show.
