A new report released yesterday by Statistics Canada has indicated that the coronavirus pandemic has been very bullish for ecommerce retailers. From February to May 2020, retail e-commerce sales climbed 99.3%, nearly doubling, while total retail sales fell 17.9%.
While to a certain extent the results were unsurprising – lockdowns in the current age will undoubtedly move people to purchase goods online – the resulting comparison between online and physical retail sales is more so impressive than it is surprising. For instance, retail sales fell $33.9 billion in April, a fall of 29.1% from February, and a 26.4% year over year decline. In store sales as a result were down 25.3% – but online retail sales were up 63.8% comparatively.
The most prominent disparity was seen among furniture and home furnishings stores, which saw a 69.6% decline of in-store sales from February to April – a function of being a non-essential service – while online sales increased 191.2% – because consumer appetite for these goods didn’t simply vanish. Food and beverage stores were the only sector to see an increase in sales during the period for in-store sales at 3.3%, however online purchases comparatively increased 107%.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
