Five Years After Covid How The Pandemic Changed Global Business Forever

The financial landscape has transformed dramatically in the five years since Covid-19 first emerged from Wuhan, China. The initial market response to the virus was relatively measured, with investors maintaining composure despite growing concerns about its spread beyond Asia’s borders.

The watershed moment arrived on 24 February 2020, when global markets experienced their most severe decline since the 2008 financial crisis. The FTSE 100 plummeted 3.3 per cent to 7,156.83, marking its worst performance in over four years. Airlines bore the brunt of the sell-off, with easyJet shares dropping 16.7 per cent and IAG falling 9.1 per cent.

The pandemic’s lasting impact has rewritten the rules of business success. While some pandemic-era winners like Zoom and Peloton have struggled to maintain their momentum, others have emerged stronger. Rolls-Royce, under the leadership of Tufan Erginbilgiç, has seen its share price soar 172 per cent compared to pre-pandemic levels, despite initial fears of company collapse.

The shift to remote work has permanently altered the commercial property sector. Major office space providers like Workspace Group and Great Portland Estates have seen their shares decline by 65 per cent and 64 per cent respectively. Traditional retailers have also faced significant challenges, with Hammerson’s share price falling 72 per cent over the five-year period.

Some unexpected victors have emerged from the crisis. Volution Group, a manufacturer of ventilation systems, has seen its share price rise 129 per cent, boosted by new building regulations emphasising improved ventilation. Similarly, Pearson has capitalised on the surge in virtual education demand, with shares climbing 136 per cent.

The pandemic’s legacy continues to shape corporate strategy, with companies adapting to hybrid working models and evolving consumer behaviours. The FTSE 100 has gained 16 per cent since February 2020, while the more domestically focused FTSE 250 has recorded a modest decline of just under 6 per cent, highlighting the varying impacts across different market segments.