In a sign that americans are increasingly buying online, e-commerce accounts for a larger share of U.S. retail sales than brick-and-mortar grocery stores, which is good news for sellers.
For the first time in U.S. history, “offline” retail sales, better known as e-commerce, are outpacing offline sales, according to a report released this week by the Commerce Department.
Paul Hickey, co-founder of Bespoke investment group in Bespoke, Bespoke, says: “over the years, online shopping has gone from a start-up to a ‘fad’. The February retail report, released by the ministry of commerce on Monday, stressed that ” the growth of online shopping has set another important milestone.”
Over the past 20 years, the e-commerce industry, known as “clicks”, has eroded the market share of traditional industries.
In the late 1990s, the e-commerce industry had a market share of less than 5%, while it rose to around 12% in 2019, according to U.S. business and department.
In February, for the first time, us retail sales surpassed physical sales, albeit by a bit. E-commerce accounted for 11.813% of U.S. retail sales last month, compared with 11.807% for brick-and-mortar grocery sales. Of course, if other sectors, such as the car and restaurant services, are included, retail sales are higher.
The e-commerce retail sector is now the fourth-largest in the U.S., with adjusted online retail sales of about $59.8 billion in February. The auto and parts sectors are the largest, accounting for about 20 per cent of all retail spending. Food and beverage stores and restaurants and bars each account for about 12% of sales.
Amazon becomes the main promoter
E-commerce giant Amazon has been a major driver of shifting the industry to online models.
Retail sales fell in February, the latest sign of slowing growth. Retail sales edged down 0.2% as americans spent less on furniture, clothing, food, electronics and appliances. Some economists expect retail sales to rise 0.3% this month.