US Nonstore Retail Sales Grow Record 26.6% in June, B2B Online Sellers Brace for Uncertain Holiday Season and Online Sales Grow 76% in June
US Nonstore Retail Sales Grow Record 26.6% in June
United States nonstore retail sales grew in June by the highest year-over-year rate of any month in recorded history. This data suggests that COVID-19 related surges in online spending endure even as the economy continues to reopen and sales through other channels are picking back up after recession-level drops. Year-over-year nonstore spending increases have been steadily growing since the pandemic took hold in the United States. May edged out April’s already impressive 23.9% nonstore spending growth, hitting 24.3%. However, experts warn gains may be short-lived as COVID-19 infection rates spike again and recently reopened retailers face more closures.
What stood out to us? What will become of the overdeveloped retail commercial real estate market?
B2B Online Sellers Brace for Uncertain Holiday Season
Christmas is coming soon for B2B online sellers. However, this year, as they deal with the ongoing litany of ecommerce challenges brought on by COVID-19, many B2B sellers don’t know, or can’t forecast, what lies ahead for the holiday season. “We are keeping our expectations and sales forecasts very fluid these days,” says Mike Connors, CEO of Bulbs.com, a B2B ecommerce site that sells electrical equipment and supplies. The holiday shopping season is quite different for B2B sellers compared to B2C merchants. The fourth quarter for web retailers is the biggest quarter of the year, and for many merchants, it’s the year’s make or break quarter. B2B buyers typically aren’t impulse-buyers, but tend to purchase goods and services for their organization year-round and often on a set schedule.
What stood out to us? “We are keeping our expectations and sales forecasts very fluid these days.”
Online Sales Grow 76% in June
Web sales are up significantly year over year as COVID-19 is still keeping shoppers at home and away from physical stores. However, online spending is tapering. While total U.S. online sales reached $73.2 billion in June year over year, up 76.2% compared with $41.5 billion a year earlier, online spending is down 11.3% from May’s $82.5 million. Daily online grocery sales fell 18% in June compared with May as consumers returned to brick and mortar stores. Another reason for the decline is grocery cart sizes shrinking as consumers stop stockpiling. Grocery cart sizes increased 33% month over month in mid-February, but has since trended down as consumers settle into sheltering in place.
What stood out to us? Will hoarding pick up again during the second wave?
In the headlines
- Honey, I shrunk the retail business: Retail shrink totaled nearly $62B in 2019.
- A priority: Procter & Gamble makes ecommerce a big priority.
- Apps and more apps: CVS launches spoken prescription tech for app users.
Before you go
More retailers cutting jobs amid pandemic.
Retails response to COVID-19.
Coronavirus impact on US marketplaces.
Dose data of the week
This is for you
If you’re not getting The Dose sent to your inbox every Saturday, make life easier by subscribing here.
Have a great weekend!