48% of retailers have transformed online, and American e-commerce is too aggressive

As we all know, in 2020, as the deadly COVID-19 continued to spread, people shopped online at home, and a large number of physical retail stores were forced to close, which promoted the rapid development of e-commerce. Many US physical retailers also planned to carry out digital transformation in 2021.

48% of US retailers are undergoing digital transformation

According to global cybersecurity company ESET , more than 70% of Americans now shop online, far more than before the COVID-19 pandemic. As consumer shopping habits continue to change, it is imperative for offline retailers to transform to e-commerce.

According to a survey report of 100 retail CFOs , 48% of retailers said they were undergoing digital transformation . Relevant data showed that in 2020, online spending in the United States accounted for 21.3% of total retail sales for the year, reaching US$861.12 billion, which once again confirms that the future of the retail industry is digital , which is beyond doubt.

According to CoStar Group , 12,200 stores closed in the U.S. last year , and apparel stores were hit hardest among retailers that filed for bankruptcy or liquidation, including JCPenney , Neiman Marcus and J. Crew . According to CoreSight Research, 10,000 stores are expected to close in 2021.

The Internet, social media and mobile devices are important transformation channels

Of the retailers surveyed by BDO, 67 % said they plan to increase their e-commerce investments in the next six months , while 54% plan to increase their mobile retail channels in the same time frame .

As the economic downturn continues due to the COVID-19 pandemic, many companies are seeking investment, and about a third of them said they hope to use investment to drive their business back to profitability. E-commerce, social commerce and mobile commerce are the key projects in which these companies want to increase investment.

Additionally, 43 % of retailers want to reduce the variety of products they offer to focus on those that generate the majority of sales, which is the 80/20 rule (where 80% of sales come from 20% of products) that retailers need to focus on when selecting inventory .

44% of consumers choose to continue shopping online after the epidemic

In fact, American consumers’ shopping habits have changed, and online shopping has become one of their easier shopping channels. ESET data shows that 44% of consumers will continue to shop online after the COVID-19 pandemic ends .

However, this does not mean that e-commerce will replace physical retail, but which industry the items consumers choose to buy belong to. Survey data shows that after the COVID-19 pandemic is over, consumers will buy more electronic products online and more groceries in stores.

For most retailers, it is important to see whether their products are suitable for online or offline placement and to choose the right sales channels in order to achieve twice the result with half the effort.

USA

Retailers

Transformation