The top brick-and-mortar retailers have shown incredible resilience in the age of online shopping. However, the more we can do online from the comfort of our own couch, the happier we are. Which trend continues?
SHOPPERS STILL HITTING THE SHELVES
Despite the surge in online retail, stores that rely on a physical presence continue to account for the lion’s share of the $2.57 trillion retail market — with more than 85% of sales.1 With consumer confidence recently hitting a six-year high2 and potential US customers eager to spend, the stakes are significant. Plus retailers are stepping up their games with bigger promotions, Thanksgiving Day openings, and deeper discounts.
BUYING ANYTHING FROM ANYWHERE ANYTIME
Admit it: shopping for that new bathrobe, pair of stilts, or above-ground pool from the comfort of your own couch is pretty hard to beat. Convenience, selection, and sometimes lower prices are all behind the expansion of online business. Projections call for online retail to grow at a compound annual growth rate of 9% through 2017.3
The proliferation of tricked-out tablets and smarter smartphones means we can get off the couch, without stopping the shopping. And that could give the growth of online commerce even more legs.
STOCKS IN THE HOT RETAIL MOTIF
STOCKS IN THE COUCH COMMERCE MOTIF
(1) “Top 100 Retailers” Stores.org Jul 2013 (http://www.stores.org/top-100-retailers)
(2) Susan Fenton “U.S. consumer confidence at six-year high, Europeans also more upbeat – survey” Reuters Oct 2013 (http://www.reuters.com/article/2013/10/30/us-global-economy-confidence-nielsen-idUSBRE99T02X20131030)
(3) Forrester Research, “US Online Retail Forecast, 2012 to 2017,” March 13, 2013, http://www.forrester.com/US+Online+Retail+Forecast+2012+To+2017/fulltext/-/E-RES93281?objectid=RES93281, (accessed May 14, 2013)