US Retailers Double Down On E-Commerce As Pandemic Wanes

The vast majority of US retailers are doubling down on their e-commerce investments in a bid to cash in on changing consumer shopping habits post-COVID-19, according to a new survey. 

Eight in 10 organizations are prioritizing investments in e-commerce operations either equally or ahead of in-store experiences, according to the survey of 250 industries in the retail, hospitality, home improvement, and consumer packaged goods industries by 451 Research, an offering of S&P Global Market Intelligence. About 54% said they will hone in on mobile payments and buy-online, in-store pickup and curbside pickup services, up from 31% in Q2 200. A mere 20% say they’re prioritizing in-store experiences.

Jordan McKee, a principal analyst with 451 Research, told S&P Global Market Intelligence that companies are prioritizing e-commerce in a bid to “future proof” themselves for the next big market disruption. 

“There were so many lessons learned throughout 2020—lots of gaps in terms of an e-commerce strategy, whether that was not having robust enough fraud prevention or not offering the right payment method mix, like digital wallets,” McKee told S&P Global. “People are taking those key learnings and just preparing for the future.”

Retail analysts in particular believe e-commerce will continue to drive growth in the sector in 2021, especially in the areas of housewares and sports equipment.

“When it comes to shopping, it’s apparent now that the consumer does not recognize any lines of demarcation at all,” said Matt Powell, senior sports industry advisor for NPD. “Shopping is all one thing to them now, no matter where it happens. The faster retailers can recognize and accept that premise, the better—and more profitable—they will become.”