Multi-channel and large scale merchants rule the retail world big time right now. This was amply demonstrated today by Target and yesterday by Walmart, both of whom reported eye-popping quarterly results, led not only by online sales, but by their stores’ curbside pick-up and delivery capabilities. Further, both retailers’ food categories have been big winners as consumers continue to stock up on at-home menu and household items.
The COVID-19 induced stay-at-home lifestyle has similarly provided a major business boost for home improvement giants Home Depot and Lowes. These four stores have also benefited from being allowed to remain open during the height of the shutdown, effectively knocking out any competition. Now that we are seeing a parade of bankruptcies from legacy department stores and other retailers, the good fortune will continue at Target, Walmart, Home Depot, and Lowe’s. The outcome of the current government stimulus proposals and the timing of an economic recovery will dictate the shape of their growth curves.
The following excerpt from a Yahoo Finance article reports more on the topic:
It’s no shock that amid the ongoing pandemic, retailers are seeing e-commerce sales surge. But even so, the numbers are eye-popping.
The stay-at-home era has served as a tide to lift many e-commerce boats: Target reported a huge Q2 earnings beat on Wednesday, with its online sales up 195%. That’s after a stellar first quarter when Target saw its online sales spike 141%, and said that in April alone, online sales were up an astonishing 282%.
Walmart reported blowout Q2 earnings on Tuesday, led by a 97% surge in online sales. That comes after Walmart’s online sales rose 74% in Q1. The chain, which was criticized years ago for being too slow to beef up its online presence, has been on an e-commerce hot streak since before the pandemic and is now a formidable online sales foe to Amazon, which saw its net sales rise 40% in Q2.
Overall, U.S. e-commerce grew 44.5% in Q2, the biggest quarterly growth in more than 20 years.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group
