Digital shopping has been a trend in the world since the coronavirus pandemic. People are shifting from physical stores to digital stores. Departmental stores are seeing a decline in customers, the sales are said to decline by 25% in the first quarter and carry on to decline by 75% in the second quarter. The sales are also said to decline by 60% in the full year. People are now shifting their focus to digital and e-commerce platforms. As a result, eCommerce has grown for 20 per cent in 2020.
The customers are also shopping for various categories since the pandemic started. As per the reports, people on not buying more clothes rather they are buying essential items including groceries. The sales of groceries have gone up to 12%. The sales of alcohol have gone up to 16% and home improvement material sales have gone up to 14%. The decline in clothing has been reported because of the work from home and school from home trend. Experts are suggesting the department stores to pick up modern services just to keep their business growing. The department stores must incorporate E-Commerce and pickup services to provide a user-friendly experience to the consumers.
Walmart and Target have recorded brilliant sales in their recent quarters. Walmart’s e-commerce sales went up to 97% in its last quarter. Target’s e-commerce sales went up to 273% in the quarter. Amazon also witnessed a 40% sales growth. According to the Q2 2020 report from the U.S. Census Bureau, U.S. retail e-commerce reached $211.5 billion. A total increase of 31.8% from the first quarter, and 44.5% as compared to the previous year. The department stores are witnessing a new era of e-commerce flourishment. Many of the department stores are adapting new measures so that they can revive their business revenues. Although, the question of the permanency of this market acceleration is still unanswered. Experts have although said that the online market has jumped five years ahead of its time.