US consumer purchasing power declines, but e-commerce revenue grows 6%

The shopping index report released by marketing platform Salesforce said that compared with the same period last year, the purchasing power of American consumers declined in February, with fewer orders and fewer items purchased . However, as inflation pushed up commodity prices, online revenue of American retailers increased by 6% year-on-year . At the same time , global retail online revenue fell by 5% year-on-year.

The Salesforce Shopping Index analyzes the activity of more than 1 billion shoppers across 54 countries and uses different factors to infer trends and realities in the retail industry .

“ The issues consumers faced during the holiday season , including inflation and low inventory, have not gone away in the new year , ” said Salesforce’s vice president of retail, Steve Jobs. “While e-commerce continues to grow , it’s clear that inflation is taking a toll on overall consumer spending. In the face of these ongoing headwinds, retailers must elevate the shopping experience for consumers . ”

Detailed report data shows that the number of orders in the US market in February fell 11% year-on-year, and the number of items per order fell 1.3% year-on-year (3.79 items, compared with 3.84 items in 2021) . Online commodity prices in the United States rose 11.2% year-on-year , while global online commodity prices rose 4.4% year-on-year .

Inventory issues eased as retailers worked to resolve supply chain issues , with product inventories falling -1% in the U.S. and -5% globally in February.

In terms of commodity categories, the product categories with the highest year-on-year price increases in February include: home furnishings and furniture ( up 21.8% ); home furnishings and electrical appliances ( up 17.9% ); home furnishings, catering, art and decoration ( up 11% ).

Product categories with the smallest price increases in February included: sports shoes ( up 1.3% ); general shoes ( up 0.8% ); and electronic products and accessories ( up 0.5% ).

“Rising inflation has consumers placing more value on deals and discounts than ever before, ” said Jennifer Lopez, chief marketing officer at Jungle Scout. “As consumers gravitate toward staying home, categories like self-care and home will thrive. This presents an opportunity for e -commerce brands to build consumer loyalty with the right products, perks and promotions to meet shoppers’ needs . ”

USA

Inflation

E-commerce