At this point, Mid March 2020 is ancient history. Completely unexpected, coronavirus pandemic swept through the US economy by storm, causing shutdowns, closures, stay-at-home orders, and an overall decline in the demand of non-essential goods.
Things are continuing to look grim for retail.
Without a doubt, the public health crisis has impacted America’s purchasing behavior. At this point, we’re looking at a 10.% decline in total retail spend, with a 14.0% drop in brick-and-mortar.
On the eCommerce side, things are looking a little more rosy. All of these shutdowns, stay at home orders, and limited retail has pushed digital to the forefront. Ecommerce is expected to grow 18% by this year, following a 14.9% gain in 2019.
The US Ecommerce 2020 Report
All of this data comes from the US Ecommerce 2020 Report. In this report, eMarketer explores the inpact of the public health crisis and explores new predictions.
Here’s some key points from the report:
- A large result of eCommerce sales are driven by a surge of so called “click-and-collect;” when consumers make intimidate purchases with little human contact. US click-and-collect eCommerce sales are now expected to grow by $58.52 billion. This growth is up 60.4% from an initial forecast of 38.6% growth.
- The 18% growth forecast for US ecommerce in 2020 is coming from both an increase in people buying things digital as well as an increase in the average spending per person. The pandemic is contining to have a huge impact on new buyers doing online shopping. We also saw a 12.2% growth in the 65+ age range.
- In a post covid-19 economy, online shoppers are spending more money with trusted and reliable retailers. At this point, it looks like the top 10 ecommerce retail businesses will grow at 21.8%, above average. Amazon is poised to gain US ecommerce market share this year. Walmart’s ecommerce continues to accelerate, which will take it to #2 in online sales behind Amazon.
- As the economy begins to reopen, the ecommerce sales will drop later this year. However, certain behaviors like click-and-collect will continue down the road and create long-term ecommerce growth.
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