Consumers around the world have spent $ 900 billion more on online retailers in 2020, compared to the previous two-year trend, according to a report released Tuesday by the Mastercard Economics Institute.
Shoppers return to restaurants and return to shops to buy clothes and shoes personally. However, they will continue to store their refrigerators and look for good deals online – a sticky habit developed during the pandemic, according to the report.
Almost all online retail sales increased as shoppers were stuck at home. As consumers shopped online in the parking lot and received packages or dining products on their doorstep, e-commerce accounted for about $ 1 out of every $ 5 spent on global retail. This is an increase from about $ 1 out of every $ 7 spent in 2019, the report says.
In a CNBC Worldwide Exchange interview with Frank Holland, Mastercard chief economist Bricklin Dwyer said about 20% to 30% of the $ 900 billion in digital spending will continue through 2021 and in a few years .
However, the long-term gains in e-commerce will be unequal and will depend on what a retailer sells, how they have adapted their business model and how consumers prefer to buy. For some goods, such as clothing, shoppers may prefer to return to the brick and mortar stores where they can try on an outfit before buying it. In some retail categories, such as electronics, online shopping has already generated a larger share of global sales, so there was less room to grow.
According to the report, grocery and discount stores will have the most dramatic and sustainable transition to e-commerce. Discount stores include dollar stores, wholesale clubs and other retailers that sell to customers at near-wholesale prices. Groceries are likely to keep about 70% to 80% of the digital sales gains they saw during the pandemic, and discount stores will keep about 40% to 50% of them, the report said.
For both sectors, online sales accounted for only a single share of global pre-pandemic sales – creating an opportunity for more visible growth.
Clothing stores, restaurants and sports / toy stores saw the largest initial increase during the pandemic, but retained only 10% to 20% of that peak in sales, according to the report.
Electronics stores and stores recorded the largest penetration of online sales before the pandemic, with e-commerce accounting for about 55% to 60% and 40% to 50% of their total sales, respectively, according to Mastercard. For the two sectors, their expected permanent change will be around 20% to 30% of their maximum jumps.
Dwyer said grocers face unique hurdles – even as more consumers buy products, meat and other ingredients online. He said only about 10 percent of the total grocery spending is done through e-commerce.
“You have to trust someone else to pick your peaches,” he said. “You have to trust someone else to deliver your goods and keep them good when they arrive. So that’s really some of the barriers we’re going through.”