eMarketer: COVID-19 Shakes Up Digital World

According to eMarketer, e-commerce sales will jump 32.4% this year. But the numbers aren’t the only story as Kroger becomes the first supermarket operator to make the top 10 sales leaders.

U.S. e-commerce sales will reach $794.50 billion this year, eMarketer stated, after having advanced at a much higher growth rate than the 18% predicted in the second quarter forecast. Consumers continue to avoid stores, eMarketer added, and opt for online shopping amid the pandemic. Online sales will more than offset the 3.2% decline in spending at stores this year, which eMarketer believes will drop to $4.71 trillion. As a result, total retail sales in the U.S. will remain essentially flat.

The top 10 e-commerce retailers will further widen their gap from the rest of the pack to account for 63.2% of all online sales this year, up from 57.9% in 2019.

Notable top 10 highlights will include:

  • Amazon’s share will grow to 39% in 2020, with the company enjoying the largest dollar gain in etailing.
  • Walmart’s share will reach 5.8%, which will push it past eBay to reach the number two slot.
  • Best Buy, up 105.5%, and Target, up 103.5%, will double e-commerce sales mostly due to the popularity of their curbside pickup offerings.
  • Kroger, which remained open during COVID-19 shopping restrictions and boosted services such as curbside pickup and delivery, jumped onto the top 10, placing 9th, as Macy’s, hobbled by store shutterings when non-essential retailers were pushed to close, fell off the top ten list.

It’s fair to note, however, that Macy’s did enjoy significant e-commerce sales gains, with digital revenues up 53% year over year in the second quarter. In the top 10, trailing Amazon, Walmart and eBay, are Apple, Home Depot, Best Buy, Target, Wayfair, Kroger and Costco.