Q2 2021 saw a significant shift in ecommerce growth, slowing to 9% compared to the massive pandemic-driven surge of 2020. This episode breaks down the latest retail sales data, big box store earnings, and Amazon developments, revealing a return to physical retail for many consumers while highlighting emerging challenges like supply chain disruptions and the ongoing impact of COVID. Ecommerce operators should understand these macro trends to contextualize their own performance and strategize for an evolving retail landscape.
Key takeaways
While overall retail sales grew 28.2% in Q2 2021 from Q2 2020, e-commerce growth slowed to 9% (and represented 13.3% of total retail sales), indicating a rebalancing towards brick-and-mortar as pandemic restrictions eased.
Essential goods retailers are facing tough comps against 2020, with much of their recent growth driven by increased in-store foot traffic rather than ecommerce. Non-essential sectors like apparel are seeing the strongest recovery.
Keep a close eye on supply chain disruptions and potential COVID resurgences as these are identified as key headwinds for Q3 and Q4 2021, impacting inventory and consumer behavior.
Amazon's potential move into large-format physical retail stores suggests a strategic play for omnichannel presence, blurring lines between online and offline commerce and indicating a future direction for major retailers.
Despite reports, debate the validity of claims that consumers spend more at Amazon than Walmart; focus on understanding the nuances of market share and consumer spending across different retail channels.
EP272 - Q2 Ecom Data, Earnings, and Amazon News US Dept of Commerce Data In July retail sales were up 13.3% from previous July (down 1.1% from June). Year to Date sales were up 21.1% vs. 2020. Apparel is in the biggest recovery, up 63%. At peak of pandemic, restaurants lost nearly $51B/mo of sales to grocery stores. In July the gap has closed to $4B in sales. Restaurants sales for the past two months are higher than two years ago. Retail sales for all of Q2 2021 grew 28.2% from Q2 2020, e-commerce in Q2 grew 9% during the same period (due to the very high covid driven e-com last year). E-Com was 13.3% of retail sales for Q2. Q2 Retail Earnings Reports Walmart – US Comp Store sales up 5.2%, E-Commerce up 6% Target – US Comp Store sales up 8.9%, E-Commerce up 10% Home Depot– US Comp Store sales up 3.4%, E-Commerce flat Lowes– US Comp Store sales down 2.2%, E-Commerce up 7% Stores selling essential goods are comping against a very large 2020 basis in Q2. Most stores saw increased foot traffic driving store growth. Concerns about Covid resurgence and supply chain disruptions loom for Q3 and Q4. Amazon News NYT wrote that people now spend more at Amazon than Walmart – Jason says the number are debatable and that's besides the point. WSJ wrote Amazon Plans to Open Large Retail Locations Akin to Department Stores. We discuss Episode 272 of the Jason & Scot show was recorded on Thursday August 20, 2021. http://jasonandscot.com</p
What does this episode say about retail & omnichannel?
While overall retail sales grew 28.2% in Q2 2021 from Q2 2020, e-commerce growth slowed to 9% (and represented 13.3% of total retail sales), indicating a rebalancing towards brick-and-mortar as pandemic restrictions eased.
What does this episode say about amazon & marketplaces?
Essential goods retailers are facing tough comps against 2020, with much of their recent growth driven by increased in-store foot traffic rather than ecommerce. Non-essential sectors like apparel are seeing the strongest recovery.
What does this episode say about supply chain & operations?
Keep a close eye on supply chain disruptions and potential COVID resurgences as these are identified as key headwinds for Q3 and Q4 2021, impacting inventory and consumer behavior.
What does this episode say about analytics & attribution?
Amazon's potential move into large-format physical retail stores suggests a strategic play for omnichannel presence, blurring lines between online and offline commerce and indicating a future direction for major retailers.
What does this episode say about retail & omnichannel?
Despite reports, debate the validity of claims that consumers spend more at Amazon than Walmart; focus on understanding the nuances of market share and consumer spending across different retail channels.
