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The Pew Research Center recently reported that eight in ten Americans now shop online, but only 15% do so on a weekly basis. Consequently, the E-commerce channel accounts for less than 10% of total U.S. retail purchases, according to the U.S. Census Bureau. Two out of three Americans say they still prefer in-store shopping over the online experience, but the tide seems to be turning toward the majority of people moving toward online shopping.
Online sales growth far outpaces growth recorded by physical stores, so E-commerce’s overall share is destined to steadily grow. Both Adobe Digital Insights and First Data report that 2016 online holiday sales beat year-ago by 11 to 12%, whereas Slice Intelligence pegged E-commerce growth at almost 20%. In sharp contrast, visits to retail stores during December 2016 declined 9.6% from prior year, according to analyst John Kernan of Cowen & Co. The first week of the new year wasn’t much brighter, as Shopper Trak reported a 5.8% drop in retail visits during the first seven days of 2017. The inevitable result will be more store closings across the country. Macy’s, for instance, has announced plans to shutter 68 stores in 2017.
Among E-commerce competitors, Amazon continues to dominate. It accounted for 38% of November-December 2016 online sales, per Slice Intelligence. That was nearly ten times the 3.9 market share achieved by Best Buy – the next closest competitor. Positions three through eight were held by name-brand retailers, each accounting for 2.3 to 2.7 percent of the E-Com market: Target, Walmart, Macy’s, Apple and Nordstrom, respectively. Kohl’s, Home Depot and J. Crew also made it into the Online Top Ten.
The information herein was compiled by Butcher Block Co., an online store specializing in kitchen furniture, equipment and accessories, including butcher block counters, islands, tables, carts and cutting boards.
Release ID: 161305