Retail

FTI Says US Online Retail Sales Likely To Surpass $1 Trillion By 2027

The business advisory firm FTI Consulting has forecasted that online retail sales in the United States will top $1 trillion by 2027, CNBC reports. The firm expects eCommerce to grow from the current figure, $445 billion, as consumers continue to move away from traditional retailers.

As of 2017, online retail sales account for 12 percent of total retail transactions in the United States, but 50 percent of retail sales growth over the span of the previous year.

Another report by retail industry group the National Retail Federation (NRF) suggests non-store sales, which include sales processed online, will expand this year as well. The report expects non-brick-and-mortar sales will rise between 11 percent to 15 percent in November and December of this year, to a figure of $140 billion.

Last year, non-store sales rose by 12.6 percent.

Amazon’s share of eCommerce is expected to increase alongside the growth of online retail sales generally, with FTI Consulting expecting the retailer to handle 53 percent of total transactions, as opposed to 34 percent in 2016. Amazon would be responsible for 12 percent of total retail transactions in the United States, compared to 4 percent today.

Amazon, which acquired Whole Foods Market in August, is also making inroads into traditional retail stalwarts in the grocery market. The stocks of grocers Kroger, Costco, Sprouts Farmers Market and SUPERVALU all fell in reaction to news of the acquisition. The stocks of big retail chains Walmart and Target fell as well.

Last week, Walmart announced that it was cutting costs in preparation for a renewed emphasis on eCommerce initiatives, citing a goal to increase total online sales by 40 percent in 2018. Walmart is also working on ways to facilitate at-home delivery of groceries.

“Behaviors are shifting,” said Spencer Millerberg, chief executive officer of One Click Retail, “but retailers have a long, long, long way to go before they can get to the necessary critical mass to be profitable selling groceries online.”

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW