e-Marketer predicts it will take up to five years for offline sales to return to pre-pandemic levels. The drop in retail sales will exceed that of the Great Recession. In the latest forecast on US retail sales (which includes auto and fuel), total retail sales will drop by 10.5% this year, steeper than the 8.2% decrease in 2009. But e-commerce sales will jump 18% in 2020, up from the prior forecast of 13%. Yet American’s reliance on Amazon and other online retailers for necessities is not going to be enough to offset losses from offline retail.
“This is the sharpest consumer spending freeze in decades in the U.S.,” said eMarketer Senior Forecasting Analyst Cindy Li in a report. “In just a couple weeks, as Americans sheltered in place, retail sales fell dramatically in March. With sales hitting their lowest point of the year in Q2, it will take years before consumer activity returns to normal levels,” she predicted.
“Everything we’re seeing with e-commerce is unprecedented, with growth rates expected to surpass anything we’ve seen since the Great Recession,” said eMarketer Principal Analyst at Insider Intelligence Andrew Lipsman. “Certain e-commerce behaviors like online grocery shopping and click-and-collect have permanently catapulted three or four years into the future in just three or four months.”