eCommerce Has Just Jumped Forward by 5 Years

Practical Summary:

• eCommerce has accelerated amid the COVID-19 pandemic
• Online sales (excluding restaurants / gas) will represent over 25% of total US retail sales in 2020 versus 16% in 2019
• Some of the early winners were the established eCommerce brands, notably Amazon, Walmart, Target and eBay
• More recently, a next leg of growth has kicked in , and it is being driven by 1) new verticals, 2) new consumers coming online, and 3) emerging technologies … this article argues that these three trends will continue well beyond 2020

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The coronavirus pandemic has been the most disruptive event to the retail sector in decades. Supply chain interruptions, huge swings in consumer demand, and shifts in retail channel preferences have dramatically altered the complexion of commerce in 2020.

COVID-19 effect

Since March 2020, we have seen a number of major retailers declare bankruptcy — department store Neiman Marcus and JC Penney; New York City-based gourmet foods retailer Dean & Deluca; amusement park operator Apex Parks; New York department store chain Century 21; apparel makers True Religion, Lucky Brands, Ascena, Brooks Brothers and J Crew; fitness chains 24 Hour Fitness and Gold’s Gym; home goods retailer Pier 1 Imports and Tuesday Morning; auto rental market leader Hertz Corp; health retailer General Nutrition Co; and entertainment company Cirque du Soleil.