There will be a V-shaped recovery in some sectors, says Sir Martin Sorrell
Advertising mogul Sir Martin Sorrell has said that the coronavirus crisis has disrupted the status quo, and companies’ recovery will be dependent on sector.
Speaking to City PM’s City View podcast, Martin Sorrell, who has previously spoken of a V-shaped recovery, said the pandemic has pushed services further online, at a consumer level and beyond.
It echoes comments Sorrell made before the pandemic took hold in the UK, in which he predicted it will “accelerate the digital revolution”.
The former WPP chief executive told City PM the recovery will vary from sector to sector and there will be V-shaped sectors such as technology, healthcare and e-commerce. The packaged goods and auto industries are likely to be U-shaped, Sorrell predicts, but travel and leisure will continue to suffer.
“The status quo has been disrupted by coronavirus to an extent we’ve not seen before,” he commented. “It is hard to see the wood from the trees but if there’s anyone good there’ll be a fundamental change in the way we work and respond.”
He is not convinced the “doom and gloom” is helpful in the current environment, instead calling on companies “set out a vision”.
Sorrel remains bullish on his advertising firm S4 Capital’s own prospects saying there is “huge opportunity” in the digital world. “We still have a fighting chance of doubling the size of the company organically, excluding deals, over three years”. It is in part because the pandemic has decreased S4’s indirect costs, from leases to travel costs.
The advertising guru also touched on “Brand Boris” and said the Prime Minister will have a difficult time dealing with coronavirus and the looming Brexit deadline simultaneously.
He pointed to the strain the economy will face when the government’s job retention scheme winds down in October. “The impact of unemployment is very worrying and Brand Boris has to deal with that.”