Online Goods Sales Growth Tops 40% for a Second Straight Week
While brick-and-mortar retail stores that are deemed essential remain open, shoppers often encounter long lines due to restrictions on the number of people allowed inside. That assumes they’re allowed inside, as many retailers offer only curbside pick-up. When you also factor in the sheer number of stores that have closed nationwide, the lack of available mass transit options, and concerns about maintaining social distancing, it’s no surprise that Americans continue to do much of their shopping online.
According to the latest edition of our Online Sales Monitor report – part of our new Beacon by 7Park E-Commerce Monitor report series – online goods sales growth reached nearly 50% for two straight weeks:
Online Groceries Sales Lead the Way
Online grocery sales remained above 120% as 16 of the 25 grocers grew sales more than 100%. Hardline merchants also continued to surge, led by home improvement (+110%), hobbies/outdoor (+176%), and computers/electronics (+104%) retailers.
The mass merchants sector recorded its fifth week of accelerated growth. Traditional brick and mortar mass merchants like Target, Walmart, and Costco experienced higher growth (+84% from +73% last week) than pure-play e-retailers (e.g., Etsy, zulily), where growth remained flat at +38% week-over-week.
Online Services Sales Slump Continues
In late March, we reported on the precipitous decline in online services sales as a result of the coronavirus outbreak. That trend continues, although there are signs of possible stabilization.
Online services sales declined 33% for the week ending April 11, the fourth week of ~30% declines. Excluding payment services like PayPal, the decline was 64% – again, similar to the prior two weeks. Travel and entertainment continued to be the laggard – down 81%, consistent with the prior two weeks.
Again, these statistics reflect online goods and services sales through the week ending April 11. We will publish the next installment of the Beacon by 7Park E-Commerce Monitor the week of April 27th.
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