Online Retail Sales Climbed 99.3% As Coronavirus Raged
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
