The COVID-19 pandemic has had a major impact on the retail industry, with ecommerce sales increasing significantly over the past three years. According to the newly released 2023 Digital Commerce 360 Top 1000 report, the Top 1000 North American-based retailers saw an additional $75 billion in ecommerce revenue from 2020 to 2022.
The COVID-19 pandemic has had a major impact on the retail industry, with ecommerce sales increasing significantly over the past three years. According to the newly released 2023 Digital Commerce 360 Top 1000 report, the Top 1000 North American-based retailers saw an additional $75 billion in ecommerce revenue from 2020 to 2022.
Amazon.com Inc. retained its No. 1 spot in the Top 1000, but lost market share to Retail Chains and Consumer Brand Manufacturers. The report found that the retailers ranked Nos. 501-1000 outpaced the growth of the 500 leading retailers by web sales.
Global online sales of the Top 1000 had been growing by 17.7% annually in the five years leading up to the pandemic. However, the Top 1000 generated online sales last year of $1.022 trillion, representing a 20.7% compound annual growth rate. This was three percentage points higher than the typical pre-pandemic rate, and the cumulative three-year stacked growth rate for the Top 1000 was 75.9%.
Retail Chains made the biggest gains, increasing their share of Top 1000 sales to 34.3% in 2022 from 32.5% in 2019. The share of Web Only retailers slipped to 48.3% from 49.6%, and Amazon’s share of Top 1000 sales declined to 36.5% in 2022 from 36.9% in 2019.
In 2022, the Top 1000 collectively increased online sales by only 5.1%, marking the first year since the deep 2008-2009 recession that Top 1000 percentage growth fell into single digits. Consumer Brand Manufacturers posted the sharpest growth in 2022 at 8.3% followed by Retail Chains at 5.7%.
The report also found that the ecommerce penetration of retail in the United States, Canada and Mexico increased significantly during the pandemic. Taking the three North American countries together, ecommerce grew by a compound annual growth rate of 22.0% from 2019-2022 versus 9.0% for all retail sales. As a result, the ecommerce share of total North American retail sales rose to 18.0% in 2022 versus 12.8% in 2019.
Sources: https://www.digitalcommerce360.com/2023/06/27/pandemic-lifts-online-growth-by-75-billion-for-top-1000-retailers/
