Target has leaped into the top 10 of eMarketer’s ranking of e-commerce retailers in the U.S., although Amazon holds firm to the top spot.
The company’s increased focus on building its e-commerce business has advanced so that its ranking jumped from number 11 to number eight in last year’s tally. As it did so, Target passed Costco, Macy’s and Qurate, which it pushed out of the top 10.
This year, according to eMarketer, Target’s digital business will jump 24% to $8.34 billion. Its share of the total U.S. e-commerce market will grow to 1.2%, up from 1.1% in 2019.
Target’s growth has been based on market share gains, eMarketer noted. In 2020, Target will inch past Costco, expected to generate $8.33 billion in e-commerce sales and should hold its own. But eMarketer maintained that Macy’s and Qurate Retail Group will see their market shares decline this year, as Macy’s drops to 1.1% from 1.2% in 2019, even though its online dollar business continues to grow. In contrast, Qurate will see its online sales decline for the second year in a row, dropping its e-commerce share to 1% from 1.2% in 2019.
Cindy Liu, eMarketer forecasting analyst, said, “Store renovations and expanding same-day fulfillment options, such as in-store pickup, drive-up and delivery with Shipt, are paying off. Target has found a way to use its stores to fulfill online orders while keeping up with customer demands for convenience and speed.”
Other retailers on the top 10 list are also losing share, eMarketer reported, as eBay and Apple will both experience slight U.S. e-commerce market share drops in 2020. Amazon’s share will grow to 38.7%, up from 37.3% in 2019, as the company captures 4.6% of total U.S. retail sales. Walmart trails Amazon in the top 10, with a 5.3% expected market share for 2020.