In a familiar theme for omnichannel retailers who have gotten ahead of the curve in digital transformation, Macy’s reported store sales down 61% in the second quarter, while ecommerce increased 53%. Still brick-and-mortar news was not all bad, as stores reopened stronger than expected and luxury goods outpaced projections.
The world is a different place than it was just a month ago. As companies try to maintain their business and stay afloat, many are wondering about the long-term impact of coronavirus on the retail and ecommerce industry. Here are some ways the dynamics of retail and services may be impacted in near term and in the years to come.
If nothing else, bad actors perpetrating ecommerce transaction fraud are clever opportunists, and a crisis like the ongoing coronavirus outbreak is proving a perfect opportunity for them to prey upon unsuspecting sellers and consumers, experts agree. The rise of contactless deliveries and working from home are among the entry points.
Ecommerce spending in the U.S. for November and December posted a new record at $142.5 billion, up 13.1%, according to data from Adobe, while Salesforce pegged worldwide ecommerce spend at $723 billion, an 8% increase. Smartphones accounted for 84% of the 2019 holiday ecommerce growth in the U.S., Adobe said.
Target’s new last-minute delivery deals and deadlines for holiday gifts has it going head-to-head with Walmart over whose fulfillment is faster and more accommodating for shoppers. Both retail giants offer free two-day shipping, but Walmart has the edge in guaranteed delivery by Christmas for ultra-last-minute shoppers.
Old Navy is partnering with Postmates to provide same-day delivery in 4,000 U.S. markets as it competes with Amazon, Walmart and Target for the holiday retail joy of robust sales driven by aggressive delivery fulfillment.
Delivery will be free from Dec. 21-23 as an incentive for last-minute consumers to buy its casual clothing.
Total ecommerce sales hit $26.93 billion over Cyber Weekend, according to data from Adobe Analytics, as stores went in the opposite direction. Cyber Monday’s online spending reached a record $9.4 billion, up 19.7%, making it the largest online shopping day of all time in the U.S. Store sales dipped nearly 1%, according to RetailNext.
Even with a shorter season and earlier deals, Black Friday is still a mammoth shopping phenomenon, with a record $7.4 billion in ecommerce sales this year, according to data from Adobe Analytics. It was the second largest online sales day ever in the U.S., after Cyber Monday 2018, at $7.9 billion.
U.S. shoppers wants lots of choices, great deals and delivery reliability over speed this holiday season, according to a survey of more than 3,000 consumers by ecommerce platform provider CommerceHub. 68% of respondents said they were either very likely or somewhat likely to shop on the major deal days, a 25% increase over 2018.
Savvy retailers are capitalizing on this consumer preference by positioning smartphones front and center when it comes to in-store fulfillment with options like BOPIS (buy online, pickup in store) and ROPIS (reserve online, pick up in store). Here are the customer benefits and some tips to make both succeed in your retail business.