eCommerce and Retail Statistics from May 2016
May’s statistics are intriguing because of what they indicate about the impact of digital commerce on brick-and-mortar retail.
Check out the insights below, collected by me and one of my digital strategy colleagues, in our inaugural monthly roundup!
Brick and Mortar Feels the Pain
1. Brick-and-mortar US retail saw a 0.5 percent dip in year-over-year store sales this past May, a decrease from April’s 0.7 percent same-store sales numbers.
2. Apparel retailers have been hit hardest. Experts blame competition from fast fashion and a long-term shift in apparel consumer spending. A good example of this is Gap Inc., which saw in-store sales drop three percent between May 2015 and May 2016 (Banana Republic saw an 11 percent decline in the same period). The company plans to close 75 stores after a rough Q1.
These numbers indicate that brick-and-mortar retailers are facing a profound shift in the retail landscape. To launch a comeback, they’ll need to strengthen their omnichannel capabilities and focus on providing better digital experiences to customers.
eCommerce Going Strong
1. UPS’s 2016 Pulse of the Online Shopper study reports that 51 percent of shopper purchases are now made online. That figure includes shoppers who research, browse, and buy entirely online and those who use a combo of eCommerce and physical stores, but complete their purchases online.
2. While brick-and-mortar apparel retailers suffer, their eCommerce counterparts have seen sales surge. Nearly eight percent of all US retail purchases in Q1 came from eCommerce, which translates to almost 200 million consumers.
We’ve seen these digital trends play out firsthand. Especially on our apparel, housewares, home furnishings, and sporting goods projects, year-over-year demand has grown significantly between May 2015 and May 2016. Apparel performance is particularly strong.
Stay tuned next month for June’s trends to see if brick-and-mortar retail improves. In the meantime, check out the nine eCommerce blogs you should be reading to learn what else is happening in digital commerce.
Mitch Hirst is a digital analyst on the insights and optimizations team at LYONSCG. He is an expert at analyzing site experiences and transforming the resulting data into digestible, actionable customer insights.
Patrick Cole is a digital strategy consultant and a core member of the insights and optimizations team at LYONSCG. He spends the bulk of his day mining for revenue-driving insights in a wide variety of digital platforms. During his tenure, Patrick has honed his ability to answer complex questions through a scientific approach. He can be found by the melodic and determined sound of his typing.