According to the research data analyzed and published by StockApps.com, US department stores reported a 75 percent drop in sales during Q2 2020. The report estimated a decline of 60 percent for the whole year, while predicting a 20 percent increase in e-commerce for the same period.
Globally speaking, a Forrester report predicted that retail sales would lose the equivalent of US$ 2.1 trillion in 2020. According to Forrester, it will take at least four years for the retail business to recover to pre-pandemic levels.
US E-commerce Sales to Jump 18 percent as Total Retail Sales Drop by 10.5 percent in 2020
During Q2 2020, e-commerce sales in the US increased by 31.8 percent compared to Q1 according to a US Census Bureau report. Compared to Q2 2019, there was a 45.5 percent increase.
From a total retail sales figure of US$ 1.31 billion, e-commerce sales accounted for 16.1 percent of the market share. It was a sharp rise from a share of 10.8 percent in Q2 2019. According to eMarketer, US e-commerce sales could jump by 18 percent by the end of 2020. On the other hand, offline retail could drop by 14 percent to US$ 4.18 trillion, driving overall retail down to 10.5 percent. Such a drop would be steeper than the 8.2 percent that was recorded during the 2008/9 recession.
Moreover, clothing is among the categories that take the biggest hit in retail. On the other hand, alcohol, grocery and home improvement categories report an uptrend. eMarketer further highlights that apparel and accessories would have the least growth at 8.6 percent. Food and beverage would, however, jump by 58.5 percent. It mentions Walmart as one of the top beneficiaries of this shift. The report predicts a 35 percent increase for Walmart in 2020 and a share of 5.8 percent of all retail e-commerce sales. It would place it ahead of eBay, which will be third with a 4.5 percent share. Amazon will take the lead with 38 percent.