A Brief Look At Online Grocery Trends Amid The Coronavirus
The coronavirus has forced many people to embrace online grocery shopping options and this trend will help spur overall e-commerce growth amid the coronavirus pandemic and related "stay at home measures," Loup Ventures Andrew Murphy and Will Thompson wrote in a blog post.
Loup Ventures' survey of 245 U.S. consumers found 72% of consumers are spending more money online, mostly due to groceries and sales of other home staples. Online sales as a percentage of total retail sales are likely to grow from 11.4% in the fourth quarter of 2019 to as much as 32% in the second quarter of 2020.
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Why It's Important
It should be noted that overall retail sales are likely to be down 30% to 40% due to country-wide closures beginning in early March, according to Loup Ventures. Many of the stores that remain open only offer to pick up options.
Online sales as a portion of total retail sales will fall in the third quarter, assuming car dealerships and other big-box stores re-open their stores. It's also likely some consumers will continue buying groceries and other staples online.
Over a multi-decade timeframe, online sales will ultimately "stabilize" at around 55% of total retail sales. This implies a potential opportunity for innovative retailers in the "hundreds of billions."
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Mar 2020 | Wedbush | Maintains | Outperform | |
Feb 2020 | Aegis Capital | Maintains | Buy |
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