E-Commerce Is a Good Investment

As shoppers stay home, online sales will smash records in 2020, a trend predicted to continue beyond the pandemic.

August 21, 2020

ATLANTA—Retailers of all stripes have upped their e-commerce game, as online shopping continues to boom, the Wall Street Journal reports. With many consumers still avoiding in-person shopping, chains like Home Depot, Walmart, Target, Lowes and AutoNation have invested heavily in online stores.

A June report from eMarketer found that U.S. e-commerce sales will accelerate 19% to hit $709.8 billion in 2020. E-commerce is predicted to grab 14.5% of total retail sales this year, a record amount. This week, Walmart, Lowes and Target were along retailers reporting e-commerce sale surges.

Home Depot reported double its online sales for the quarter ending Aug. 2, a more than 14% slice of its overall net sales. “Online has really become the front door to stores,” said Fahim Siddiqui, senior vice president of information technology at Home Depot.

Nestlé has seen e-commerce sales skyrocket for coffee and pet food, among other products. Direct-to-consumer websites registered nearly 50% bumps in sales the first half of 2020. “Half jokingly, we were saying from now on, it’s going to be like a Black Friday or a Cyber Monday every day,” said Filippo Catalano, group chief information officer at Nestlé.

Several convenience stores have embraced online stores as well. Foxtrot Market, which started out as an online-only retailer, returned to its roots during the pandemic. DoorDash recently debuted its DashMart online convenience store in eight cities.

Coronavirus Resources

NACS has compiled resources to help the convenience retail community navigate the COVID-19 crisis. For news updates and guidance, visit our coronavirus resources page.